Fed to Buy Up US Treasury Bills - www.ChrisThePro.com
By Chris Johnson, Realtor Daytona Beach, Florida
(Realty Pros and Associates)
In an effort curve further contractings in US economy the Federal Reserve decided to buy up nearly $2 Trillion of non-traditional assetts while leaving key interest rates low. "Job losses, declining equity and housing wealth and tight credit conditions have weighed on consumer sentiment and spending," the Fed's monetary-policy committee said this afternoon in announcing its move. Now the Fed previously stated it planed to buy just $600 Billion in mortgage bonds, U.S. Treasury Bonds and other securities on the open market, but is now planning closer to tripple that amount at $1.75 Trillion. So, how does this affect housing? In the short run...offen these policies impact mortgage rates causing them to lower. In this case...rates should be back a records lows. Experts are saying this cou...