Interest Rates have gone way down! WHY?
The Mortgage Industry just received a nice boost! The fed is going to buy Mortgage Bonds. The Federal Reserve just announced that it would purchase $600 Billion of Mortgage-Backed Securities backed by Fannie Mae, Freddie Mac,(Conventional Loans) and Ginnie Mae.(FHA and VA loans) This great move by the feds is designed to help increase the availability of Credit, while lowering fixed rate mortgages across the board. The Bond and MBS market is on fire this morning and we have seen already the lowest rates in years this morning.
In addition the the Feds are setting aside $200B to stimulate the other credit markets such as Comsumer loans and Small business loans. This will prop up the Auto, Student and Small business administration loan markets.
As this market reveals itself it is time to get on the phone and take action if you are considering buying, selling or refinancing. This will be short but well received interest stimulus package for all consumers.
Happy Holidays,
Jeff Hamilton
