Markets Respond Favorably to Fed’s $600 Billion Pledge, But Is it Enough to Spur a Refinance Boom?
December 4, 2008
Financial markets enthusiastically embraced the Federal Reserve’s decision last week to buy $100 billion of Fannie Mae, Freddie Mac, and Federal Home Loan Bank debt, and $500 billion of mortgage-backed securities issued by Fannie and Freddie as well as by Ginnie Mae. One week after the Fed announced its big move, mortgage rates dropped well below 6.0 percent to their lowest...