Two Reasons Interest Rates Will Improve in Early January

Something very interesting happened this week that will have a HUGE impact on mortgage rates for the next three to six months. Most consumers don’t know this, but Fannie Mae and Freddie Mac charge fees for loans that they buy from lenders.  Presumably these fees help fund the GSEs (Government-sponsored entities) and help them pay...

The Fed Announces the Dreaded Taper

The Federal Reserve (the Fed) has been driving down interest rates–particularly mortgage interest rates–by purchasing $45 billion worth of U.S. Treasuries a month and $40 billion worth of mortgage-backed securities (MBS) per month. Mortgage-backed securities are essentially debt borrower by institutional lenders (such as Fannie Mae and Freddie Mac) to fund the purchase of mortgages. ...