Wednesday the Federal Reserve said that over the course of the rest of the year, they will purchase up to $750 billion of Mortgage Backed Securities. This move is designed to help shore up the housing market by pushing mortgage interest rates down further. Mortgage rates (already in a historically low range) moved even
lower on the news.
As of noon yesterday, 30 year fixed rates for a well qualified borrower with a 20% down payment (or 20% equity) were in the 4.750% range. This is down from a range of 5.25% (which has been widely available for the past several weeks). The Fed’s move yesterday should help keep mortgage rates in a low range for the rest of the spring / summer home buying season.
Guest blogger, Michael Polera, is a loan consultant with Baird & Warner Financial Services. Michael can be reached at 847.818.6029 or by email at michael.polera@bairdwarner.com.
Fran Bailey, Realtor
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The fed is pouring money into the mortgage market by buying agency paper and now even some treasuries. As long as the money keeps coming in and the foriegn investor keep buying our treasuries we will se the mortgages drop.