The Federal Reserve has committed to purchase up to $300 billion in Treasuries and, now, an additional $750 billion in agency mortgage-backed securities, bringing its bond purchase commitment to $1.25 trillion. Officials released a statement following their policymaking session saying that the moves are meant “to provide greater support to mortgage lending and housing markets.” Weiss Research property analyst Mike Larson says the purchases by the central bank could lower the 30-year fixed mortgage rate to 4.5 percent, marking the lowest level since 4.7 percent in 1945.
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From “Mortgage Rates May Fall to Lowest Since WWII on Fed Purchases”
Bloomberg (03/19/09) Louis, Brian
