As we watch the 30 year fixed rate mortgage hover around 5.75% today and still field phone calls from people who want 4.5% or lower, we need to be aware of that the government still has not stepped to the plate and followed through with their promise. Only today did they shed some light on where they are with the purchase of mortgage backed securities:
JP Morgan article
Until they begin purchasing these securities in bulk we will continue to see rates languish between 5.5% and 6%. Even then, if they wait too long to act, there may be other forces that will not allow the rates to go lower.
Stay tuned more interesting times!
