The Federal Reserve recently announced it’s changing its investment strategy, which could translate into lower mortgage rates down the road. What does that all mean? Michael Lea, director of SDSU’s real estate center, said officials are basically selling off shorter-term Treasury holdings for longer-term ones and mortgage-backed securities. “They’re changing the composition of their balance sheet,” said Lea, a past chief economist of mortgage giant Freddie Mac. “This isn’t a new round of quantitative easing. They’re reinvesting, not injecting more money into the economy.” The decision could push down long-term interest rates, and in turn, mortgage rates. This is encouraging news for buyers and well worth your effort to share this story.
Read the rest of this story at Sign On San Diego: “How Will Fed Decision Affect Home Loan Rates?”
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