The only questions that I see coming from this are:<\/p>\n
- \n
- Will those differences automatically reverse themselves when the program stops? It’s not necessarily a given that they will unwind immediately when the buying by the Fed stops.<\/li>\n
- How long will it take for those positions to unwind? Will rates climb over 30 days? 6 months? 12 to 18 months?<\/li>\n
- If you are contemplating either refinancing or purchasing relatively soon, why haven’t you done something yet? Take a look at the list of Bloodhounds on the right side and call any of the lenders on the list or call your favorite local guy, but don’t wait too long. The window of opportunity is going to be closing some time soon and probably sooner than we all think.<\/li>\n<\/ul>\n
Stay Tuned……<\/p>\n
Tom Vanderwell<\/p>\n
The Fed\u2019s Market\u2019s Guy Eyes Asset Sales and Rate Increases – Real Time Economics – WSJ<\/a><\/p>\n
Mr. Sack is a key voice on the Fed\u2019s expanding balance sheet, because he manages most of the central bank\u2019s interactions with financial markets and thus many of its asset purchase and money lending programs……<\/p>\n
Mr. Sack\u2019s group estimates that the Fed\u2019s purchases of $300 billion in long-term Treasury securities earlier this year helped to push yields on 10-year Treasury notes down by about half a percentage point……<\/p>\n
Some critics have argued that the Treasury purchases didn\u2019t have the intended impact of pushing rates down.
But Mr. Sack \u2013 a long-time proponent of such purchases \u2013 said his estimate is supported by regression analyses by the Fed. <\/p>\nPurchases of mortgage backed securities, he says, pushed those rates down by a full percentage point.<\/p><\/blockquote>\n
Technorati Tags: Mortgage Rates<\/a>, The Federal Reserve<\/a><\/p>\n
![\"\"](\"http:\/\/img.zemanta.com\/pixy.gif?x-id=1061dc73-d66c-82ed-99c7-3a0595d5b175\")
<\/div>\n","protected":false},"excerpt":{"rendered":"Okay, this Mr. Sack guy is the guy who manages the Fed’s day to day dealing with the financial markets. Here’s what he had to say about rates yesterday: 10 year Treasuries were .50% lower than they would have been without the program. Mortgage rates would be 1% higher if it weren’t for the Fed’s […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[],"class_list":{"0":"post-10488","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2529,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2529\/amaze-your-friends-why-the-surprise-fed-funds-rate-drop-isnt-impacting-mortgage-rates\/","url_meta":{"origin":10488,"position":0},"title":"Amaze Your Friends : Why The “Surprise” Fed Funds Rate Drop Isn’t Impacting Mortgage Rates","author":"Dan Green","date":"January 22, 2008","format":false,"excerpt":"Advanced Fiscal Literacy For Real Estate Professionals The Fed Funds Rate is a fair proxy for economic health.\u00a0 When the economy is growing, the FFR\u00a0rises to fight inflation. When the economy is slowing, the FFR\u00a0falls to fight \"the absence of inflation\" (i.e recession). If inflation is the enemy of mortgage\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8979,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8979\/the-fed-translated-7\/","url_meta":{"origin":10488,"position":1},"title":"The Fed Translated…..","author":"Tom Vanderwell","date":"June 24, 2009","format":false,"excerpt":"In keeping with my practice of translating the Fed's statements, here goes this one:\"Move along, keep moving, nothing to see here folks!\u00a0\u00a0 Business as usual!\"They didn't do a thing to address the bond market concerns or to allow that things are changing at all.\u00a0\u00a0 Expect mortgage rates to drift up\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8270,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8270\/stress-tests-and-wells-fargo-a-tin-foil-hat-production\/","url_meta":{"origin":10488,"position":2},"title":"Stress Tests and Wells Fargo: A Tin Foil Hat Production","author":"Sean Purcell","date":"May 7, 2009","format":false,"excerpt":"Today the Fed releases the results of the banking industry \"stress test.\"\u00a0 You remember this test right?\u00a0 The Fed created a scenario of economic failure well beyond what is already the worst economic downturn in seventy years.\u00a0 They then evaluate the banks' ability to withstand this Armageddon against the Fed's\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8627,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8627\/lower-june-2009-mortgage-rates-rely-on-central-bank-action\/","url_meta":{"origin":10488,"position":3},"title":"Lower June, 2009 Mortgage Rates Rely On Central Bank Action","author":"Brian Brady","date":"May 28, 2009","format":false,"excerpt":"May Day in the mortgage rates market is over.\u00a0 The market got spooked by triangulated opinions about the viability of the US Treasury as a going concern.\u00a0 In response, mortgage traders sold off mortgage-backed securities, some 3-4%, in 4 days, to drive mortgage rates from 4.75%\u00a0 to the 5.375% current\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13550,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13550\/mama-grizzly-knows-sumptin-its-sunset-for-low-mortgage-rates\/","url_meta":{"origin":10488,"position":4},"title":"Mama Grizzly Knows Sumptin’: It’s Sunset For Low Mortgage Rates","author":"Brian Brady","date":"November 8, 2010","format":false,"excerpt":"One of the things I love about the internet is that links last.\u00a0 For your soap-operatic pleasure, Sarah Palin asks a national author if he read his own newspaper, when he criticized her remarks about inflation: So, imagine my dismay when I read an article by Sudeep Reddy in today\u2019s\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2796,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2796\/will-the-fed-buy-mortgage-backed-securities-in-the-open-market\/","url_meta":{"origin":10488,"position":5},"title":"Will the Fed Buy Mortgage Backed Securities In the Open Market?","author":"Brian Brady","date":"March 18, 2008","format":false,"excerpt":"I never post my Mortgage Rates Reports here.\u00a0 They're boring unless you are thinking about buying a home or refinancing your mortgage.\u00a0 Today, it seems plausible that the Fed is shifting its open market activities from buying treasuries, to buying mortgage-backed securities, in order to bolster liquidity in the mortgage\u2026","rel":"","context":"In 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