Federal Reserve Move Shocks Mortgage Market

U.S. mortgage bond rates are at record lows following a Federal Reserve decision to swap out its purchases of short-term mortgage bonds for long-term bonds.

This will raise the price of bonds and reduce their yields, leading to lower mortgage interest rates.

The Federal Reserve is doing everything it can to avoid the American economy slipping back into recession.

There’s been an uptick in mortgage refinancing due to lower interest rates but high lending standards and a large percentage of homes being underwater limit further growth, and put downward pressure on U.S. economic growth.

Those with great credit will prosper from the latest Fed move and those who don’t won’t be helped much.

Read On.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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