About Government Refinance and Home Purchase Programs

Information and Updates on Government Mortgage Programs
Filed under Government Mortgage Financing Programs News

Are the historically low mortgage interest rates gone for good? It is starting to look like the answer might be yes. This recent Bloomberg article suggests that the markets reacted to the Fed’s rate compressing efforts in the first half of this year but inflation fears are beginning to make the market more and more immune to Fed purchases now. If that is the case, we may soon be at a point where a rate at or below 6% will be considered excellent…

Here are some excerpts from the article:

The Federal Reserve’s mortgage- buying program to bolster housing demand by lowering fixed interest rates is losing effectiveness at a time of the year when sales of U.S. real estate traditionally peak. …

“The government played chicken with the bond market and it lost,” said Randy Johnson, president of Newport Beach, California-based Independence Mortgage Co. “If they were able to keep it up long enough, the housing market would heal and the rest on the economy could start its recovery. What has happened, however, is that the bond market called their bluff.”

Comments (0) Posted by G.R.A. Admin on Friday, June 12th, 2009


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