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Federal Reserve Latest News: US Rate on 30-year Mortgage Falls to 3.93 Pct.

Wochit 0:56 mins

U.S. mortgage rates declined this week, with the average on the 30-year fixed loan remaining just under 4 percent. But rates likely will surge next week now that Chairman Ben Bernanke said the Federal Reserve is likely to reduce its bond purchases later this year. Ben Bernanke scared stock investors when he said the Federal Reserve may start slowing its economic stimulus program later this year. For years, the Fed's extraordinary intervention in the economy has kept borrowing rates very low. But people fear that once the Fed steps back, rates will inevitably rise. Stock futures have fallen adding to a more than 1 percent drop in U.S. equities just a day before. The losses come after Federal Reserve Chairman Ben Bernanke outlined the start of a wind-down of stimuli that has been instrumental to the market's previous rally.

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