Just a quick note here-
We’ve been waiting for WEEKS and WEEKS to hear some shred of evidence that some of the big bailout money would be going toward purchasing Mortgage Backed Securities.
Well, it’s finally happening! Kind of.
“In addition, the Federal Reserve, the nation’s central bank, announced it will purchase up to $500 billion in mortgage backed securities that have been backed by Fannie Mae (FNM, Fortune 500), Freddie Mac (FRE, Fortune 500), and Ginnie Mae, the three government-sponsored mortgage finance firms set up to promote home ownership. It will also buy another $100 billion in direct debt issued by those firms.”
This means rates should fall dramatically over the coming days, and hopefully STAY LOW for a time so we can get off the crazy roller-coaster we have been on, and feel confident once again in our lending system.
NOTE- this $500 billion purchase is NOT related to the bailout money. This is entirely separate. Meaning, those government printing presses must be getting MIGHTY HOT!
Hold on to your hats, we’re in for an exciting day. Fingers crossed, an exciting and steady few months!!!
Jennifer Monastero
Citizens Community Bank
Last 5 posts in Mortgage Rates
- Mortgage Market Update - July 2nd, 2009
- Buyer Interest in Purchase Loans Surges - July 1st, 2009
- Morning Market Update - July 1st, 2009
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- Mortgage Market Update - June 26th, 2009
- Stumble it!
- Categories: Mortgage Rates
Comments
3 Comments so far
David G
Thanks for letting us know Jen. I guess desperate times call for desperate measures. It’s nice to finally see a plan that could have a real impact on mortgage rates.
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