Posted on 11/30/2017 11:28:33 AM PST by Oldeconomybuyer
NEW YORK - The Federal Reserve bought $3.447 billion of agency mortgage-backed securities in the week from Nov. 23 to Nov. 29, compared with $5.516 billion purchased the previous week, the New York Federal Reserve Bank said on Thursday.
In a move to help the housing market begun in October 2011, the U.S. central bank has been using funds from principal payments on the agency debt and agency mortgage-backed securities, or MBS, it holds to reinvest in agency MBS.
(Excerpt) Read more at reuters.com ...
They bought $5.516 billion worth the week before and sold none. So, nearly a $9 billion play.
This raises the price of homes—making it tough for first time home-buyers.
Some day the youngsters may figure it out—and consign the Fed to the ash-heap of history.
Bkmk
It also reduces the cost of mortgages, making it easier for first time home-buyers.
Meanwhile, those newly weds trying to buy their first house are "cut out" from buying an affordable house.
No buyers. Except our grandchildren.
What would that do to newly weds if mortgage rates were two or three percentage points higher?
My first rate was 7%.
Yellen crap bomb on her way out?
Mine was a touch over 6% when I bought in 2008. I refinanced in 2012 at 3.45%.
Excuse me.
Why has no one asked where they got the money from to make this $9 billion buy?
My first house mortgage rate was 14%. And I have an 850 credit score - and never bounced a check in my life.
Double-digit rate musta been during Jimmah’s time in office.
Kill Freddie and Fannie and legislate the Federal Reserve cannot buy MBS bonds.
Fifty+ years of federal “housing support” has manufactured housing or interest rate bubbles, and then the Fed had to rescue the economy from the crisis it has helped produce.
I had a double digit V.A. loan at a rate lower than the market (and glad to get it)
back when V.A. set their own rate, though it was Reagan - 1981.
Bought for 74k sold for 128k, now worth 330k.
oh well.
>
Fifty+ years of federal “housing support” has manufactured housing or interest rate bubbles, and then the Fed had to rescue the economy from the crisis it has helped produce.
>
100yrs+ of (illegal conveyance of authority/power) “fostering the stability, integrity and efficiency of our nation’s monetary, financial and payments systems”...by foisting a Great Depression and interest to have made even PENNIES worthless.
"Every Congressman, every Senator knows precisely what causes inflation...but can't, [won't] support the drastic reforms to stop it [repeal of the Federal Reserve Act] because it could cost him his job." - Robert A. Heinlein, 1966
Our first mortgage was 8.5 %.
We survived.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.