The Federal Reserve is targeting unemployment.
The Federal Reserve said in September it would buy $40 billion of mortgage-backed securities a month until the labor market rebounds. The goal: to free up banks to lend more.
It's the Fed's third attempt since 2008 to use this tactic, called quantitative easing.
Targeting the 8%-plus jobless rate, QE3, as it's known, is likely to hold down mortgage rates which in October hit a 60-year low of 3.36%.
The Fed also plans to keep short-term rates near zero through mid-2015, so get used to current savings yields (recently averaging 0.12%).
And if you're looking to beef up bond fund income, Morningstar Investment Management economist Francisco Torralba suggests short-term corporates, which yield about 2% today. Though the risk of inflation is low, he says, a spike would hit higher-yielding long-term bonds harder.
|Michaels hack hit 3 million|
|GM's recalled Cobalt was a failure from the start|
|Ousted Yahoo exec gets $58 million golden parachute|
|Detroit pension cuts hit civilian workers hardest|
|Obama would cut deficits by another $1 trillion|
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||4.32%||4.26%|
|15 yr fixed||3.36%||3.27%|
|30 yr refi||4.31%||4.24%|
|15 yr refi||3.34%||3.25%|
Today's featured rates: