Seattle Mortgage Rates Today 10/24/12: “FOMC, what say you?”  Today finishes the Federal Open Market Committee’s (FOMC) meeting concerning monetary policy.  There’s not much to report as Quantitative Easing 3 has been implemented and that the Fed Funds Rate will not be increased has already been stated.  That much we do know.  Perhaps the Fed will re-iterate—or regurgitate—that they will continue with the current programs in order to aid in economic recovery.

One thing to note is that as the Fed continues to purchase mortgage bonds to the tune of $40B a month with printed money, inflation is inevitable.  Inflation needs to be under close watch and must be controlled.  If memory serves correctly, QE1 and QE2 did little to boost the economy.  Where does that leave QE3?  It’s not likely that QE3 will serve us anything different.  However, as money is pumped into the economy and the economy begins to grow, the Fed better have a plan in place to eliminate those additional funds from the system.