Mar. 23, 2009 ? The Fed announced its intent to buy $300 billion of long term mortgage bonds, sending the bonds upward, and mortgage rates downward.
You can still get a 30-year fixed rate at a lower rate than currently offered on 3, 5, or 7 year arms, and FHA rates are slightly better than conventional rates right now.
Also, it was announced that part of the bailout plan includes buying up toxic assets. What this means is the government would buy up mortgages in foreclosure, and possibly other charge offs and collections. This would, in theory, free up some of the credit crunch, and allow more money to be lent. This would be a huge undertaking, and there may not be enough resources to tackle such a task, but time will tell.Email This Post To a Friend.