Mortgage Rate Update: Another All-Time Low!

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Mortgage Rate Update: Another All-Time Low!

Mortgage Rate Update

Yesterday 30 year mortgages had one of its best days in over a year. The Fed at one of their pre-scheduled FOMC meetings did what markets were expecting, plus more. The view prior to the FOMC policy statement at 2:22 yesterday was that the Fed would institute “Operation Twist” as it has been dubbed, selling shorter dated notes and replacing them with longer term notes and bonds to drive down long-term rates. The amount of shifting was expected to be about $300B, the Fed said it will be $400B. The Fed however surprised markets with the announcement it would turn back to buying Mortgage-Backed Securities (MBS’s) with principle pay downs on MBSs it now holds and instead of investing back into treasuries as it had been doing, investing in more MBSs. The reaction was swift in the mortgage market as MBSs soared in price and interest rates dropped.

The possibility of default by Greece and concern of an international recession have also helped to drive down rates this week in the MBS markets.

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Sean McCracken

As the OC Realtor I’ll help you find your special OC Coastal home at that special price. With my hand holding, I’ll take you through the buying process for the minimal amount of pain - Call Me @ 949-290-5317

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Sean McCracken

September 24, 2011 at 3:36 am

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Sean McCracken
Surterre Properties – Ecobroker Certified
Phone: 949-290-5317

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