Come and Get Your Love (4.5% Mortgage Rate)
You asked for it? You finally got it. Shout it from the mountaintop, scream it in the valleys-
The Bailout is here. The Bailout is here !
The Federal Reserve announced that the WILL buy mortgage-backed securities, in the open market, in an attempt to lower mortgage rates to 4.5% or lower:
The Federal Reserve on Tuesday announced that it expects to begin operations in early January under the previously announced program to purchase mortgage-backed securities (MBS) and that it has selected private investment managers to act as its agents in implementing the program.
Under the MBS purchase program, the Federal Reserve will purchase MBS backed by Fannie Mae, Freddie Mac, and Ginnie Mae; the program is being established to support the mortgage and housing markets and to foster improved conditions in financial markets more generally.
Mortgage markets are responsding with EXUBERANCE…joy…unbridled passion! In post-market trading, the 4% coupons are trading at a premium, suggesting that mortgage rates should open below 4.5% tomorrow.
Come and get your money…if you qualify for it.