san jose loan officer: California's Mortgage Rates set to go up because of Fed actions - 01/27/10 09:34 AM

The Fed's statement today does not augur well for California Mortgage Rates. The Fed's policy-setting committee stuck to a plan to end its purchases of mortgage securities by the end of March.
Background - The program to purchase agency mortgage-backed securities (agency MBS)  was announced by the Federal Reserve on November 25, 2008. On Wednesday, March 18, the FOMC announced the expansion of the Federal Reserve's program to purchase agency MBS up to $1.25 trillion by the end of the year. On September 23, 2009, the FOMC announced that the Federal Reserve will purchase a total of $1.25 trillion of agency mortgage-backed … (0 comments)