At it's last meeting, the board of directors of the Federal Reserve Bank agreed on two important decisions directly related to the domestic home sales market. First they decided to leave the current prime rate where it is at 0.25%, which is as close to zero as you can get. Then they decided to begin buying up mortgage backed securities. Those are those investment packages of home mortgages that you have heard so much about in recent times on the news. By taking mortgage backed securities off the sluggish market, it is predicted that banks will begin lending again to fill the demand for new mortgage backed securities that will be created. Posted by Colleen Lane on
Email Send a link to post via Email

Leave A Comment

Please note that your email address is kept private upon posting.