Rates are great but not much purchase action mostly refi's. After the refi boom is done what is next...
Just my thoughts here...
The gov't can't keep buying bonds and paper, they run FNMA and FMAC so not only are they buying the paper but they are guaranteeing it.
It seems like they are burning the candle at both ends and the one who will get burnt is you and I.
At some point they will have to turn over control back to the private market and when they do this do you really think the investors will be ok making 4.5%...?
Answer: No!
At that point the market will start risk based pricing and the risk is huge so at this point rates will go up when the Treasury runs out of money...
Anyone feel free to comment or correct.
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