Wall Street insiders estimate the Fed’s $300 billion in Treasury purchases helped push down rates on those securities by half a percentage point and its purchasing of mortgage-backed securities (it will eventually buy $1.25 trillion) is pushing down rates on those securities by a full percentage point.
US government bought over 90% of all mortgages last 3-4 months
Patricia Braynon, director of the housing finance agency for Florida’s Miami Dade County recently said: “We didn’t have anyone purchasing the bonds at a competitive rate so now the U.S. Treasury has agreed to purchase them, It will generate an artificial market.”
When the Fed stops buying MBS on March 31 it is possible that the jump in mortgage rates will be higher than the 25 to 50 basis-point increase some economists have predicted (there are 100 basis points in one percent). Of course, knowing this the Fed may once again extend its purchases of MBS, keeping rates artificially low.
When will we ever get back to the way we were before we start kidding ourselves about having a strong economy at all?
Dallas personal injury lawyer
Why do we think jeopardizing our country’s future for short term gain is a good idea? As a whole, Americans live beyond their means and rely on….credit. You can’t expect Uncle Sam to “fix” all of your personal finance problems. Time to let the chips fall where they may…
Houston auto accident lawyers
Three more years of precipitous drops and I’ll be able to afford one….. YEA!
acne treatments
The housing market appears to recovering, but the question remains how will the market fare after government subsidies?