Thursday, January 28, 2010

MBS purchase program to end March 31, 2010

Yesterday, the Fed confirmed that its Mortgage Backed Security purchase program will end March 31, 2010. This announcement was expected, however, there WAS a chance that the program would be extended or expanded but this hoped for extension did not happen.

What this means for Mortgage interest rates is that without the extra demand that the Government has created for Mortgage Bonds, we could see a fall in Bond Prices and an increase in Mortgage rates beginning in April.

I will keep you posted of additional market news affecting mortgage rates.

No comments: