And, the good news is …
No, that’s not a chart of your stock portfolio’s recent history (athought it does look kinda familar) – it’s my prediction of conforming residential mortgage interest rates over the near and intermediate term.
"The Treasury Department purchased $23.2 billion in Fannie Mae and Freddie Mac mortgage-backed securities in November and the Federal Reserve is gearing up to purchase GSE MBS by the end of December in an effort to reduce mortgage rates. Since Sept. 7, when the mortgage giants were placed in conservatorships, Treasury has purchased nearly $50 billion in government sponsored enterprise MBS. The Federal Reserve Board has committed to purchase $500 billion in Fannie and Freddie MBS over the next several quarters and $100 billion in GSE debt."
With news articles like this, rates have nowhere else to go, but DOWN! I venture to say, it’s the best news the industry’s heard in quite some time! Ok then, Time to Get to Work!
