Federal Reserve to Pump Up to $600 Billion of Liquidity Into MBS Market
November 25, 2008
The Federal Reserve this week announced a major new initiative to lower mortgage rates by buying up to $600 billion of debt and mortgage-backed securities issued by the government-sponsored enterprises. After spiking sharply higher last month, mortgage rates have remained near 6.0 percent in part because of deliberate government efforts to provide liquidity to the market. The Treasury...