(212) 769-9807
Pzweben@Elliman.com
Menu
Menu

Fed keeps hammer down on....

Fed keeps hammer down on

 mortgage rates

Mortgage-backed securities purchases could

 reach $1.25 trillion

Inman News

In a bid to keep mortgage rates low, the Federal Reserve said Thursday it will boost purchases of mortgage-backed securities this year to as much as $1.25 trillion -- a $750 billion increase from a previous commitment.

The move is part of a $1.15 trillion expansion of the Fed's balance sheet that's intended to encourage borrowing and revive the economy. Having effectively slashed short-term interest rates to zero, the Federal Open Market Committee is resorting to other means to stimulate growth.

In addition to stepping up purchases of mortgage-backed securities, the Fed said it would purchase up to $300 billion in long-term Treasury securities over the next six months, and doubled a previous commitment to buy $100 billion in debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.

The move should give would-be homebuyers and those seeking to refinance confidence that mortgage interest rates will stay low for months to come. So far, the Fed has used up only $217 billion of a $600 billion program launched last fall to drive down mortgage interest rates.

In November, the Fed kicked off the program with a promise to buy up to $100 billion in debt from Fannie Mae, Freddie Mac and the Federal Home Loan Banks, and $500 billion in mortgage-backed securities backed by Fannie Mae, Freddie Mac and Ginnie Mae. The program has been widely credited with bringing down interest rates on conventional, conforming mortgages to historic lows of around 5 percent.

Some economists worry that the Fed's growing obligations, along with other government spending and tax cuts intended to jump-start the economy, will spur inflation. The committee, which sets monetary policy, issued a statement saying the near-term outlook for the economy is "weak," and that members expect inflation to "remain subdued."

Have you seen these yet?

Work with The Zweben Team

With The Zweben Team, we guarantee attentive and personalized service. We genuinely listen to your aspirations, offer sincere recommendations, and utilize our expert negotiation skills to fiercely advocate for you. With us, you're choosing unparalleled expertise and a tailored experience to meet your unique real estate needs.
Contact us

Subscribe To

THE ZWEBEN TEAM NEWSLETTER
Experience a monthly dose of handpicked content from The Zweben Team, showcasing exclusive property listings, market updates and a little foodie fun.

Paul Zweben, Licensed Associate RE Broker
pzweben@elliman.com
Carolyn Zweben, Licensed Associate RE Broker
czweben@elliman.com
1995 Broadway, New York, 10023

Copyright @ 2024 The Zweben Team. All Rights Reserved. Privacy Policy. Powered by 23 Window Media.

575 MADISON AVENUE, NEW YORK, NY 10022. 212. 891.7000 © 2024 DOUGLAS ELLIMAN REAL ESTATE. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT OR ZONING EXPERT. EQUAL HOUSING OPPORTUNITY. NYS STANDARD OPERATING PROCEDURE & NYS HOUSING DISCRIMINATION DISCLOSURE FORM. NOTICE DISCLOSING TENANTS’ RIGHTS TO REASONABLE ACCOMMODATIONS FOR PERSONS WITH DISABILITIES.

cross