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Wednesday, March 31, 2010

Federal Reserve MBS buyback program ends today - may be time to lock

Just wanted to give all the readers a heads up - the Federal Reserve's mortgage-backed securities purchase program ends today.  This means that there will be less liquidity in this market leading to lower bond prices and higher yields.  Many analysts foresee interest rates trending upward from here.  If you are in a position to lock a loan, it may be a good day to lock it, at least relative to where rates may be going.  No one has a crystal ball, but I would err on the "better safe than sorry" side.

Make it a great day.

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