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Mortgage rates fell this week and could have further to fall in coming weeks. With Fannie Mae...

Mortgage rates fell this week and could have further to fall in coming weeks. With Fannie Mae (FNM) and Freddie Mac (FRE) buying delinquent loans, rates could drop in the short-term because investors will sell higher-yield bonds to buy par coupons, which drive mortgage rates. Analysts still expect rates to rise later in the spring when the Fed stops buying mortgage-backed securities.
Comments (4)
  • herbert hoover
    , contributor
    Comments (2005) | Send Message
     
    The Fed cannot stop buying MBS - otherwise it's a fine analysis.
    12 Feb 2010, 12:46 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    Lets get one thing straight right off the bat...

     

    Fannie and Freddie are not buying the delinquent loans, the AMERICAN TAX PAYERS ARE!! The US Govt, who owns Fannie and Freddie, are purchasing this crap and using them as a "vehicle". This is the underhanded and illegal crap tht must stop now! Period!
    12 Feb 2010, 12:56 PM Reply Like
  • herbert hoover
    , contributor
    Comments (2005) | Send Message
     
    But the banks need to rid their balance sheets of this toxic waste. The government is the baks' best friend.
    12 Feb 2010, 02:18 PM Reply Like
  • nightfly
    , contributor
    Comments (1017) | Send Message
     
    They will try and stop until the Fall or so when housing continues to falling of the cliff.
    12 Feb 2010, 12:56 PM Reply Like
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