elina
Joined: 31 Jan 2007
Posts: 4
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| Posted: Tue Apr 24, 2007 10:35 am Post subject: Mortgage Rate Rise Halts |
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Hi,
As predicted, mortgage interest rates closed their latest rise, as muted economic data trimmed the rising pressure of earlier weeks. The average 30-year fixed-rate mortgage (FRM) drops a single basis point, closing the pricing at 6.37%. For Hybrid 5/1 ARMs, a decline of five basis points was noted, and that average finished the week at 6.17%. |
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byrosemuji222
Joined: 18 Nov 2009
Posts: 3
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| Posted: Wed Nov 18, 2009 3:46 am Post subject: |
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The central bank may address its plans to unwind this program, one of its biggest of forays into the private credit markets over the past year, in Wednesday's policy statement. Read more on the Fed.
"Once we don't have the largest incremental buyer of mortgages, who will step up to take that role?" asked Todd White, a bond portfolio manager at RiverSource Investments.
"It probably won't be a smooth transition, assuming rates are near where we are currently."
Since the central bank said nearly a year ago it planned to buy up privately held mortgage-related bonds, eventually becoming the largest buyer of mortgage-backed securities, mortgage rates have tumbled to just over 5% from more than 6%. See related story.
Fed officials and many economists credit the Fed's plans to buy $1.25 trillion in mortgage-backed securities and $200 billion in debt sold by Fannie Mae /quotes/comstock/13*!fnm/quotes/nls/fnm (FNM 1.00, -0.01, -0.99%) , Freddie Mac /quotes/comstock/13*!fre/quotes/nls/fre (FRE 1.10, 0.00, 0.00%) and Ginnie Mae, for weighing on rates. It's already finished the bulk of the purchases, expected to end in March.
Other factors also helped improve dynamics in the mortgage, including a lower supply of new mortgages.
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