The Monthly Bulletin

April 2009

 

 

Presented by:

Dave Armstrong
Senior Loan Consultant

Toll Free 1-888-826-7117

E-mail: darmstrong245@vandykmortgage.com

Website: www.dlahomefinance.com

1035 Spaulding - Grand Rapids, MI 49546


 

 

Bold moves by the Fed are aimed at
keeping mortgage rates low

 

In an effort to provide greater support to the mortgage lending and housing markets, the Fed announced it will be purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to up to $1.25 trillion this year, and that it would increase it’s purchases of agency debt this year by up to $100 billion to a total of up to $200 billion. Moreover, to help improve conditions in private credit markets, the Committee decided to purchase up to $300 billion of longer-term Treasury securities over the next six months.

 

These moves by the Fed are projected to keep 30-year fixed mortgage rates low for some time to come. However, it is not anticipated that rates will drop substantially further. Additionally, there are some warnings that the aggressive moves by the Fed might cause inflation down the road. And, if inflation occurs, then it will likely cause home loan rates to increase.

 

 

 

“He who knows nothing is closer to the truth than he whose mind is filled with falsehoods and errors.”

– Thomas Jefferson, 3rd U.S. President / Born: April 13, 1743

“Time stays long enough for anyone who will use it.”

– Leonardo DaVinci, Italian Artist / Born: April 15, 1452

“The optimist thinks this is the best of all possible worlds. The pessimist fears it is true.”

– J. Robert Oppenheimer, Nuclear Physicist / Born: April 22, 1904

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