May Additional Stimulation Trigger Lower Mortgage Rates? (2)

So the major questions are: will this stimulation function, and what impact will it have on mortgage prices? The 2nd query is probably the most easily handled, therefore let us begin there. Theoretically, extra relationship buys in the Federal Reserve should cause mortgage rates to diminish. Extra interest in treasury records developed by Provided buys should make the costs of the notes. Continue reading →

May Additional Stimulation Trigger Lower Mortgage Rates? (1)

Earlier this week, a co-worker of mine wrote a great post how an extra round of quantitative easing from the fed may change mortgage rates. For individuals who do not understand quantitative easing is actually a system through which the money supply is increased by the Federal Reserve. This transport of money to the economy is expected to provide banks excess reserves, which surplus is given out or place to the economy, ideally revitalizing development. Continue reading →