Mortgage rates are improving on Fed's BIG announcement (ZT)

It truly is going to be a Happy Thanksgiving for home buyers and home owners looking to get a mortgage.

Recognizing the need to further goose consumer access to credit and to help stabilize the housing market, the FED stepped up today with a MASSIVE announcement that included the commitment to purchase up to $600 Billion in Fannie Mae, Freddie Mac, and Ginnie Mae backed mortgage securities. This seems to be the short term guarantee that was necessary to lure MBS buyers back in causing the much awaited rally in Mortgage-Backed Securities (MBS).

Translation: LOWER RATES. MBS are up over 100 bps this morning, expect rates to be anywhere between .25 and up to .50 better today.

Article on the announcement

http://bloomberg.com/apps/news?pid=20601087&sid=agGWOuloIFxw&refer=home

Treasury Secretary Henry Paulson also announced that this effort may be expanded at some point to include NON-AGENCY MORTGAGE (aka Jumbo) DEBT which could also have a huge effect on stabilizing the markets

The Fed also announced that it will allocate up to $200 Billion to bring liquidity into the business, auto and student loan financing markets.

If you know of someone looking to buy a home or refinance, today is the day. Please forward this email on to everyone you know because they will really improve their financial situation.

It’s time to start acting from a position of abundance and power.

(Thanks to my loan consultant friend John Esplana)