Yesterday I received the following information from Christian Emmel over at Trident Mortgage -
"Today the Fed announced that it will purchase $600 Billion worth of Mortgage-Backed Securities backed by Fannie Mae, Freddie Mac, an Ginnie Mae. This should help increase the availability of credit, while also lowering fixed mortgage rates. In addition, the Fed will allocate $200 Billion to create liquidity in the auto, student, and small business loan markets.
The immediate impact of this was about a .5% decrease in interest rates today alone. Current 30 year fixed rates with zero points are now about 5.750%!!
This move is geared directly to bringing buyers out and buying homes, allowing current home owners to refinance, lowering their payments or consolidating debt as well as alleviating some of the pressure on the rest of the credit industry. This could prove to be the absolute perfect time for those who have been on the fence to move forward & unlock this market."
So now the question is...will this be the trigger point to help move the housing market back in a positive direction?
