Why 30 Year Fixed Mortgage Rates Should Be At 2.75% And Why They Aren’t?

Ben Bernanke must be tearing his hair (whatever is left of it). He has increased Fed's balance sheet to an all time high of almost $3 trillion mostly through bond purchases. But the mortgage rates haven't declined as much he would have hoped. He is frustrated that the lower yield on mortgage backed securities are not being passed on to the borrowers in form of lower mortgage rates. In fact, he called the trend "unfortunate" and Federal Reserve Bank of New York held a workshop to examine the issue. Imagine 30 year fixed…
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