The Federal Reserve has announced its plan to buy mortgage-backed securities is on track to end March 31st of this year. Out of its $1.25 trillion plan, it has spent about 92% of the monies allotted and foresees an on time completion of its purchases March 31st, 2010. According to the Fed, the plan could possibly be extended should information that the recovery of the housing markets requires its continued existence.
Analysis of the program’s end has given evidence that since the purchase of the securities is set to end in March, a rise in mortgage rates as much as 1% is anticipated.
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