March 25th, 2009 Categories: Mortgage Update
From our mortgage specialist, Rob Clarke: “Last week was another huge week for the mortgage industry with the Federal Reserve announcing a massive extension to its ongoing program of purchasing mortgage-backed debt and securities. The original $600 billion program was announced in November, and the Fed has been spending approximately $4 billion per day buying mortgage-backed securities.
Assuming the Fed continues to buy at this rate, the additional $750 billion will enable the Fed to purchase nearly every conforming mortgage originated this year. Along with the other programs announced, the Fed has made it clear to the market that it intends to keep interest rates contained in an effort to help bolster the economy.”
For more about what this means for home buyers in Alexandria and Northern Virginia, click here.