As of March 31 the Federal Reserve is no longer buying mortgage-backed securities (MBS), terminating a large component of its effort to stabilize and stimulate the economy. The Fed poured $1.25trn into purchasing risky bundles of housing loans, providing capital for troubled lenders and investors in the mortgage-backed market. The Fed’s purchasing program provided much-needed liquidity for government-run mortgage financing companies Freddie Mac and Fannie Mae to buy bank loans issued to home buyers. The program also allowed mortgage rates to remain abnormally low, which let borrowers make more manageable payments and new home buyers to purchase properties. Indeed rates have been low: 30-year fixed mortgage rates at 5% interest and adjustable mortgage rates with interest in the low 4s.

Most Popular Articles

Quicken Loans hits “pause” on One Reverse Mortgage, moves all employees to Rocket Mortgage

Quicken Loans has become the largest mortgage lender in the country over the last few years due in large part to the growth of Rocket Mortgage, the company’s digital mortgage platform. As it turns out, Rocket Mortgage is becoming so big that it’s now consuming other parts of the Quicken Loans family of companies too, namely the company’s reverse mortgage lender.

Feb 21, 2020 By

Latest Articles

FHFA: U.S. house prices gained 5.1% in Q4

U.S. home prices increased 5.1% in the fourth quarter from a year ago, matching the pace of the prior quarter, according to the Federal Housing Finance Agency.

Feb 25, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please