The Fed minutes of the lates Fed meeting was released today.
Among the obvious statements including the fact that 4th quarter of 2008 was worse than expected and 2009 will be worse than expected, a funny comment was made.
One of them pointed out that things took a turn for the worse when Paulson announced he was not going to use the TARP (troubled asset releif) funds to purchase bad assets from banks.
I find that ironic since Bernake and Paulson both spent so much time and effort convincing our political leaders to give them the $700B with the premise that they would be used to purchase troubled mortgage assets and ease the credit crunch.
Well luckily cooler heads prevailed and yesterday the Feds made their first purchase using TARP funds of trouble assets from banks :)
Experts seem to think that mortgage rates will settle somewhere around 3.5%-4% in the very near future and will remain low throughout the remainder of the recession. Feds say to expect a turnaround in 2010. The same people that said that the credit crisis was "contained within the subprime lending markets".
It doesn't take an expert to see that housing prices are reaching a floor and interest rates are about to become as low as they will ever be. If this doesn't spur a turnaround in the housing market (which will in turn save the rest of the economy) then nothing will.
We look forward to forming more relationships and continuing our journey on the roller coaster ride that is the mortgage industry!
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