Fed announces unlimited purchases of MBS and Treasuries, adds multifamily mortgages

from the article…

“Following this morning’s Fed announcement, the NY Fed issued a statement revising its mortgage-bond purchase schedule issued last week. The bond purchases probably will total at least $125 billion a day, it said. “The desk plans to conduct operations totaling approximately $75 billion of Treasury securities and approximately $50 billion of agency MBS each business day this week, subject to reasonable prices,” the New York Fed said. “The desk will begin agency CMBS purchases this week,” it said, referring to commercial mortgage-backed securities, without citing a target amount.

In the last week, the Fed has resurrected many of the measures it used during the 2008 financial crisis. It cut interest rates to near zero, re-launched QE bond-buying and opened emergency lending windows to support commercial paper issuers and money market funds.

 

It has also added new tactics – such as Monday’s announcement that it would buy agency-backed commercial mortgages, which typically are used to build apartment buildings.”

 

Tip for sellers who need to Sell Real Estate.

  1. People might not realize how much downside there could be in the housing market.   The Federal Reserve obviously aware of the problem in the mortgage market right now.
  2. If you are going to sell… be the lowest priced home in your range and try to sell fast.  Do not sign long term listing agreements.  Consider selling to professional buyers to preserve equity if you have any right now.

 

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