The Fed had already pledged to go into the marketplace and purchase $40 Billion in mortgage backed securities.Today that has been increased to $85 Billion per month (over $1 Trillion per year). Furthermore, it was announced that number would basically go up to unlimited until the unemployment rate declines befow 6.5%....quite a drop.
Currently the "inflationary expectations" are extremely low. Not the actual inflation rate but what the public thinks that it will be. The Fed said that if these inflationary expectations rise to 2.5% they would slow down (artifically stoking the mortgage market). Whenever the Fed slows down on pumping newly printed US$ into the US economy the public invariably panics and inflation heats up....along with much higher interest rates (to compensate lenders that need inflation protection in higher rates).
What does this have to do with our business as Real Estate Brokers and agents?......EVERYTHING!