MBS Purchase Update

Posted on December 30, 2008. Filed under: Interest Rates | Tags: , |


The Federal Reserve confirmed their previously mentioned plan to buy Mortgage Backed Securities to drive down mortgage rates and prop up the ailing housing industry.  How MBSs change rates can be found here https://michaelpfeffer.wordpress.com/rate-basics/.

Beginning early January the Fed will begin a continuous purchase program that will include 15, 20 and 30 year products.  How far they can drive down rates is yet to be seen but this will be a consistent effort that will be managed by private firms chosen by the government.  Expect easing rates in 2009.  How far will mortgage rates drop?  No one knows for sure but it seems the Fed finally fully understands that recovery in the housing market is necessary and must precede recovery in other sectors.

Advertisements

Make a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Liked it here?
Why not try sites on the blogroll...

%d bloggers like this: