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The Fed and Mortgage Costs

By
Industry Observer with No Longer Processing Mortgages. MLO #293441 expired

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.)

Posted by

 

Steven CookSteven T Cook
Loan Officer, MLO-293441      

Cascade Pacific Home Loans  NMLS ID 76988
720 S 333rd St  Federal Way  WA  98003
Office 253-874-1111 | Cell 253-677-1064
Toll Free 1-800-874-8760 | fax 253-295-3901
scook@cphloans.com | www.bayeq.com

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Comments(4)

David Shamansky
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
Steven Cook
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
Shannon Milligan, Richmond VA Real Estate Agent/Associate Broker
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
Steven Cook
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