The Federal Reserve wrapped up there two day meeting today with an awesome announcement. They have decided to expand there purchase of Mortgage Backed Securities by an additional $750 billion for a total of $1.25 Trillion. They also announced they are buying up to $300 billion of Treasury Notes.
Mortgage Bonds have staged a HUGE RALLY on this news up just over 100 Basis Points. We should see a significant improvement in mortgage rates as a result of these moves by the Fed.
We should see some additional improvements in interest rates. But the great news is this move by the Federal reserve should insure that 30 year mortgage rates remain at or below the 5.00% range for extended period of time.
This should definitely help the housing market. Let's keep the good news coming. This is it folks. We are going to make a come back.
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