Government stops purchasing mortgages

The Federal Government stopped buying mortgage backed securities yesterday. From 2009 until 31 March, the Gov purchased 1.25 trillion dollars worth of mortgage backed bonds. This kept interest rates on home mortgages at near record lows. Now that the government isn’t buying, it will give more room for private investors to step up. As of yet, interest rates haven’t spiked, and remain around 5%. If the economy continues to improve, rates will probably rise, though.

People are starting to watch interest rates.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s