This should pep up refinances.
Rates went down to a record low of 4.71% in early December. Since they’ve been heading steadily up. There are all sorts of reasons driving this increase in mortgage rates including huge government deficits, a weak dollar, surging commodity prices…
Steve Forbes argues in his new book on Capitalism that cheap money drove the housing boom and bust.
The Federal Reserve is pumping $1.25 trillion into mortgage-backed securities to try to bring down mortgage rates, but that money is set to run out next spring. The goal of the program is to make home buying more affordable and prop up the housing market.
The central bank’s policymakers have been conflicted about whether to expand or cut back a program intended to drive down mortgage rates and bolster the housing market, according to meeting minutes released Wednesday.
Some Fed policymakers argued that the program might need to be expanded and extended beyond its current end date of March 31, arguing that the additional dose of stimulus would be especially needed if the economic recovery were to weaken.