The Ramsey Group - Mortgage Update
March 23, 2009 · Print This Article
Federal Reserve - Mortgages
Last week was an important week for
the mortgage industry. The Federal Reserve announced a massive extension to its program of purchasing mortgage-backed debt and securities. Last November the program was originally unveiled at an amount of $600 billion! This, along with other programs that the Fed has announced sends a clear message that the intends on keeping interest rates contained in an effort to bolster the U.S. economy.
U.S. Economy
The U.S. government continues to try and intervene in a positive way to keep the mortgage rates low. These actions have helped however, the weak economy and the slowed inflationary pressure are also providing pressure to hold the mortgage rates low. All indicators point to this trend continuing for the near future. This week there are expectations of more weak data from the housing markets and a small downward adjustment in GDP. This should hold the rates low but is not expected to cause them to go even lower.
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