| FHA Mortgage Rates |
500 Billion From the Federal Reserve lowers rates for
homeowners.
The Federal Reserve announced on Tuesday that it will
initiate a program to purchase the direct obligations of
housing-related government-sponsored enterprises
(GSEs)--Fannie Mae, Freddie Mac, and the Federal Home
Loan Banks--and mortgage-backed securities (MBS)
backed by Fannie Mae, Freddie Mac, and Ginnie Mae.
Spreads of rates on GSE debt and on GSE-guaranteed
mortgages have widened appreciably of late. This action is
being taken to reduce the cost and increase the availability
of credit for the purchase of houses, which in turn should
support housing markets and foster improved conditions
in financial markets more generally.
Purchases of up to $100 billion in GSE direct obligations
under the program will be conducted with the Federal
Reserve's primary dealers through a series of competitive
auctions and will begin next week. Purchases of up to
$500 billion in MBS will be conducted by asset managers
selected via a competitive process with a goal of beginning
these purchases before year-end. Purchases of both
direct obligations and MBS are expected to take place over
several quarters. Further information regarding the
operational details of this program will be provided after
consultation with market participants.
homeowners.
The Federal Reserve announced on Tuesday that it will
initiate a program to purchase the direct obligations of
housing-related government-sponsored enterprises
(GSEs)--Fannie Mae, Freddie Mac, and the Federal Home
Loan Banks--and mortgage-backed securities (MBS)
backed by Fannie Mae, Freddie Mac, and Ginnie Mae.
Spreads of rates on GSE debt and on GSE-guaranteed
mortgages have widened appreciably of late. This action is
being taken to reduce the cost and increase the availability
of credit for the purchase of houses, which in turn should
support housing markets and foster improved conditions
in financial markets more generally.
Purchases of up to $100 billion in GSE direct obligations
under the program will be conducted with the Federal
Reserve's primary dealers through a series of competitive
auctions and will begin next week. Purchases of up to
$500 billion in MBS will be conducted by asset managers
selected via a competitive process with a goal of beginning
these purchases before year-end. Purchases of both
direct obligations and MBS are expected to take place over
several quarters. Further information regarding the
operational details of this program will be provided after
consultation with market participants.
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