The Fed and Mortgage Costs are connected again. At the close of their recent meeting, the Fed has announced that it will be taking about $400 Billion in short term holdings and move to transfer them into longer term holdings.
This announcement brought a down turn in the stock market, and is expected to hold down the mortgage rates for the next few months. They may even go a bit lower (though how much lower they can actually go is anybody's guess.)
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg
equities are overheated and bond market is also overbought right now but I guess time and rationale may return to common sense... but then again maybe not.
Sep 21, 2011 10:32 AM
No Longer Processing Mortgages. - Tacoma, WA
David -- You are apparently of the belief that those in positions of power possess "common sense". With the non-recovering recovery going on for so long already, that may be a bit presumptuous.
Sep 21, 2011 11:06 AM
RVA Home Team - Richmond, VA
RVA Home Team - Winning with Integrity.
Feeling the pain of the down turn of the stock market :( But, at least rates are low and it's a great time to buy!
Sep 23, 2011 08:03 AM
No Longer Processing Mortgages. - Tacoma, WA
Shannon - thank you for stopping by. Yes, these are very interesting times, we can be happy the rates are low - but at the same time be disenchanted that the market is not growing (with our retirement accounts in it).
Sep 26, 2011 08:00 AM
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