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The Fed's rate rescue
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The Federal Reserve just threw a massive life-line to consumers today, with new programs aimed at making it easier for them to obtain loans for homes, cars and on credit cards.
Under the new mortgage program, the Fed will buy up to $100 billion of debt issued by government-sponsored mortgage enterprises Fannie Mae, Freddie Mac and the Federal Home Loan Banks. It will also buy up to $500 billion of mortgage securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae. Doing so should increase credit availability and lower fixed mortgage rates.
As a result of the Fed's new programs, rates are have gone down to the mid to low 5% range. What are we all waiting on?! My good friend and lender, Patrick Dunn, said that with these new programs in place, we could even reach all time low's in addition to the best rates of this year.
"They are getting to the heart of the problem, it's clean, it's quick, it's direct," said Todd Abraham, co-head of government and mortgage bonds at Federated Investors in Pittsburgh, Pennsylvania. "It's a good way to bring down mortgage rates." (http://www.reuters.com/article/ousiv/idUSTRE4AO4QY20081125)
With this great news about mortgage rates going down, making it more affordable than ever before, what can I do to help you with your home buying or selling needs?
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