Loading ...The US Government is taking unprecedented steps to ensure florida mortgage rates remain as low as possible. Only one day ago the Feds announced that they are pledging another $750 Billion dollars to continue to buy agency Mortgage Backed Securities (MBS). These MBS are exactly what the entire conforming loan market is run on. Since the mortgage meltdown last year there has been virtually no investor support to purchase these MBS from lenders that are making loans. The Federal Governments support for these MBS is what is holding our conforming lending world together.
“To provide greater support to mortgage lending and housing markets, the Committee decided today to increase the size of the Federal Reserve’s balance sheet further by purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to up to $1.25 trillion this year, and to increase its purchases of agency debt this year by up to $100 billion to a total of up to $200 billion.”
This means the Federal Reserve is now going to provide $1.45trillion in supply support for the mortgage market. When all is said and done the government will own roughly $3 trillion in agency mortgage backed securities (taking into account what the Fannie & Freddie already own). That is about 75% of all agency MBS in the market today!
This is all technical jargon but what it means to the average Florida resident is that mortgage rates fell IMMEDIATELY upon the announcement. Rates have flirted with the low 4
Tags: 4% rates in florida, florida conventional loan, florida mortgage, florida rates, florida refinance, florida refinance boom