Mortgage Interest Rate Alert

By
Real Estate Broker/Owner with Buyers' Choice Realty

 

The Federal Reserve announced a massive new program today to buy mortgage-backed securities.  Up to $500 billion in funds will be used to buy mortgage-backed securities backed by Fannie Mae, Freddie Mac and Ginnie Mae and up to $100 billion in funds will be used to buy up debt issued by those housing agencies. 

"This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved financial conditions more generally." The Fed said in their statement. 

This latest step strikes at the heart of the current financial crisis, which is the struggling housing market.  Mortgages are staging a huge rally in response to the news.

 

What do you think about this?

 

Myrtle Beach Real Estate by Mirela Monte                                        

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Comments (10)

Anonymous
JASON

With the Treasury Secretary on his spending spree he surely isn’t trying to get a good return on the tax payers’ investment. The bailout was to buy up bad mortgage debt but it never did. What is the purpose of the fund? Paulson’s has warrants on many banks and they average 1 – 3 percent when enacted. Yet the cash investment is about 20 percent of the market cap. Maybe the next Treasury Secretary will be less erratic. http://nomedals.blogspot.com

Nov 25, 2008 05:41 AM
#1
Mirela Monte
Buyers' Choice Realty - North Myrtle Beach, SC
Myrtle Beach Real Estate

Jason:  Please come and comment on my blogs ANYTIME!  Your scope of knowledge is impressive.  Thank you!

Nov 25, 2008 05:48 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Mirela, I tried to comment on this in the morning... I was going to be eloquent ... now I am not so sure!  I posted on the very subject today. Uncle sam steps in and will buy up to 500 billion in Mortgages.. That is HUGE, and the market loved it. we saw a HUGE improvement in rates, bringing them down into the 5's. Getting close to where they should be based on the current economic data.

Nov 25, 2008 06:03 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Mirela, I tried to comment on this in the morning... I was going to be eloquent ... now I am not so sure!  I posted on the very subject today. Uncle sam steps in and will buy up to 500 billion in Mortgages.. That is HUGE, and the market loved it. we saw a HUGE improvement in rates, bringing them down into the 5's. Getting close to where they should be based on the current economic data.

Nov 25, 2008 06:03 AM
Mirela Monte
Buyers' Choice Realty - North Myrtle Beach, SC
Myrtle Beach Real Estate

Robert:  you are ALWAYS eloquent!

This should help, no?

Nov 25, 2008 07:05 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

It certainly cant hurt. But we couldnt really complain about rates to start with. Consumer confidence is the key. Happy consumers spend money.... so we just need every one to get happy!!!

Nov 25, 2008 07:17 AM
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Nov 25, 2008 11:58 AM
#7
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Dont you hate getting spammed like the above comment on your blog????

Nov 26, 2008 05:36 AM
Mirela Monte
Buyers' Choice Realty - North Myrtle Beach, SC
Myrtle Beach Real Estate

Robert:  It doesn't even bother me, but now that I noticed, I'll send him an invite to AR, so he can spam me without going through all these extra steps...  I'm easy! 

*Note:  As long as you comment on my blogs, you are welcome to spam me to your heart's delight. 

**Note2:  For every spam, I want a joke!

Nov 26, 2008 06:56 AM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

A Joke if you are spammed.  as in:

  • Why did the punk rocker cross the road?
  • Because he was stapled to the chicken!
Nov 27, 2008 12:57 AM