May 7th, 2014 1:54 PM by Leonard Silvestri
The Fed announced its plans to reduce its monthly mortgage-bond purchases by $5 billion this month. Many factors play a role in the current housing market with homeowners waiting out higher paying markets, new construction lulls and a fluctuating economic rebound. However with the right mortgage broker to guide you there are still great rates and opportunities for buyers as the market consistently up ticks.The U.S. mortgage-bond market is getting some relief as the Federal Reserve winds down purchases of the debt, with fewer new loans reducing supply.
While a plunge in mortgage volumes is prompting lenders including Wells Fargo & Co. and Toronto-Dominion Bank’s U.S. unit to take steps such as loosening standards to lure business, it’s proving a salve in a $5.4 trillion bond market tied to the loans. That’s sent a measure of relative yields on securities that guide borrowing costs to the lowest since January 2013.