Russell Stout's Austin Mortgage Blog

The plan for the government to purchase $500 Billion in Mortgage Backed Securities has begun.  The money is to be spent over the 1st half of 2009 in an effort to keep mortgage rates low for purchase and refinances.  The plan will allow for purchase of bonds from Fannie, Freddie, and Ginnie Mae. 

With rates at record lows, it seems the goal is to insure rates remain in the current range.  Many foreign investors had stopped purchasing MBS on fears of instability in the US housing market.  This caused mortgage rates to be higher than normal in relation to most other rates or indexes.

With rates now in the 4's for the most qualified borrowers, the plan seems to be working.