Thursday, December 17, 2009

Fed MBS purchase program drawing to a close

Thu, Dec 17 - 3:17 PM ET
The Fed bought $16B in Mortgage Backed Securities (MBS) in the latest week bringing the total to $1.087T. There is $163B left to purchase until the end of the 1st quarter of 2010.

With approximately 14 weeks remaining in the Fed Bond purchasing program, no indication has been given that there will be an extension of the program. Without purchase of MBS by the Government, bond prices could begin to fall and mortgage rates could begin to increase.

I will watch this situation very closely and will make regular Blog Posts to update this important news. Call me with additional questions or if you would like to lock in a rate at these historically low rates for either purchase or refinance needs.

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