Good Morning Blogger,
As you know, the members of the Federal Open Market Committee voted unanimously to not only ramp up their direct purchases of mortgage-backed securities by an additional $750 billion – but for the first time since 1960 the Fed will become a direct buyer of up to $300 billion of longer-dated Treasury obligations. On its face there is nothing but good news here for the prospects of steady to fractionally lower mortgage interest rates.
In addition to these two major mortgage market friendly events the Fed’s Term Asset-Backed Securities Loan Facility (TALF) will kick-off today. This $200 billion program is designed to break the logjam in the short-term credit markets and allow funds to start flowing once again for credit card receivables, car and student loans and numerous other business credit facilities. If the program is successful the Fed is prepared to ratchet funding up to $1 trillion dollar level.
How is this effecting interest rates? Yesterday rates were 5.125. Today they are 4.875. Rates are fractionally better. As I have said in last months email, rates are going to tread in this range for maybe 6 months. After that, I am expecting 6+% to be the going rate.
Let me know if you have any questions.
Don’t forget to check out all of Chico’s listings at www.matthewherman.com . If you know of someone that is selling or buying, I am never too busy to help them out.
Your full time realtor,
Matt
-=-=-=-=-=-=-=-=-=-
Matthew Herman
Keller Williams Realty
530-809-3754 (Office)
530-809-3755 (Fax)
No comments:
Post a Comment