Mortgage Blog

Hope you guys enjoyed the Halloween last night.

For the mortgage rates, the trades will purchase more stocks tahn bonds, that means the rate will go up a little bit. But for the QEII, when the Fed purchase the bonds, the rate will go lower. So now when the Fed purchase more bonds, the rate will go lower; otherwise, it goes higher.

Does that mean the Fed can "manipulate" the rate? We all know they want to keep the rate low until everyone refiannced. But how low do they want it to be?