Why does feds buy treasury bills?
What are the feds going to do with the mortage rates? The Fed doesn`t really “do” anything with mortgage rates. They control the Fed Funds and the Discount Rate which is the cost banks pay to borrow from the Fed and other banks for overnight lending. Mortgage rates generally react to Fed actions and today the Fed announced they would continue to buy mortgages, which caused interest rates to improve. Interest rates have been very volatile for the last couple months, and have moved as much as . 75% in a three day span. I don`t think it is a good idea to try to “play the market” and guess when interest rates will bottom because nobody knows what will happen. If you can get a competitive interest rate and the payment is what you can afford, get in the market. If you are a First Time Homebuyer and are in a competitive market, like Southern California, if you wait too long you run the risk of missing out on the $8000 Federal Income Tax Credit which expires on November 30. On Thu, Jun 25, 200
