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Is the Treasury buying today? With the fed funds rates at zero, the government still has plenty of firepower left in the form of purchasing mortgage backed securities (MBS). Although the Treasury doesn’t say when, where, or how much it is buying, the market indicates a sizable pressure forcing rates down. This could be a sign that the government has again launched an all-out assault on purchasing MBS. The most important part is that the Treasury is buying these securities at a price point where it feels they can help the most. 

The government seems, for now, to have found a formula that is working, with Fannie Mae and Freddie Mac under government control, the government pumping money into the banks, lowering the fed funds rate to zero, then having the Treasury purchase MBS, and then following it up with another possible bail-out with the staggering price of $825 billion dollars.  
  
What does this mean for Mainstreet? Well, it is too early to say, but with banks that will continue to process loans and the government driving mortgages rates down only to purchase the loans on the back through Fannie Mae and Freddie Mac, the housing industry may be able to recover sooner rather than later.

Patient, determined, and easy going, you never miss a beat. The Penguin has the surviveABILITY to prosper in harsh conditions. The Penguin person succeeds at their own merits. Hard working, logical, and tenacious, the Penguin can be trusted to get the job done. By nature, the Penguin is methodical, sticking to routines and tradition. The rigidity and militant style of the Penguin often results in an unapproachable and intimidating personality. The penguin should weather this storm nicely 

With all the bad news circling the mortgage industry, you might not realize what a great time to get a mortgage this is. For all well qualified borrowers, rates haven’t been this good since 1961. This is all thanks to the US government stepping in and buying mortgages while trying to establish a floor in home values.

So what does this mean to potential homeowners? If the government succeeds in creating a bottom in housing, you will reap the benefits for years to come with low rates and below market purchase prices.