Good news from the mortgage market
Posted January 9, 2012
Quiet the early part of the week, with no economic reports being released today. Treasuries have moved slightly to the downside to start the trading day, with the yield on the 10 Year hitting 1.92 just before noon. Good news for the mortgage market as we start the week. From last Friday, according to Freddie Mac – the 30 year fixed was the lowest on record since it started keeping track of the movement of interest rates.
It looks as though we’ll be receiving a big announcement soon from Washington. A group consisting of The Obama Administration, FHFA and other Federal Regulators are putting together a new program to help reduce some of the outstanding housing inventory in the US which would be framed as a REO Bulk selling program between the Government and Private Investors. REO or (Real Estate Owned) in this case references properties that are currently under the ownership umbrella of FHA, Fannie Mae or Freddie Mac. The idea here is to get some of these properties off their books – in bulk – so they can be returned to the markets as healthy, income producing rental properties. I’ll provide more details as they become available.