Wednesday, September 21, 2011

What is "Operation Twist," And What Does It Have to Do With Mortgage Rates?

The Federal Reserve (FOMC) concludes an unusual 2-day meeting this afternoon, and the expectation is that they'll announce America is a declining empire signal the use of "tools" to help the massive debt issues and structural unemployment crisis.  The upside to the crisis is historically low mortgage rates, now about 4.09%.  Nevertheless, few folks are willing or able to take advantage and housing remains moribund.  The green line in graph 2 helps explain why mortgage rates are so low.

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