Although the general consensus is (was?) that mortgage interest rates will increase after the Federal Reserve stops buying mortgage backed securities at the end of March, some believe the end of the Fed buying MBS will have little effect on mortgage interest rates.
But with the relatively calm market reaction to last week’s hike of the discount lending rate and the pullback of a few other Fed liquidity measures, the consensus has changed to seeing little or no move in mortgage rates.
And here’s an interestig (scary) tidbit, bank lending is at its lowest point in nearly 70 years.
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ken44 02.26.10 at 11:02 am
If the Feds. stop buying mortgage backed securities the housing market will continue deteriorating and drag the economy down with it. The country is in a huge financial mess and how we get out of it is anybody’s guess.
Thank god I’ve got steady employment.