Little short-term change is expected as Fed departs MBS market:

04/1/2010 | Los Angeles Times (tiered subscription model)

In the short term, mortgage interest rates will not change much because of closure of the U.S. Federal Reserve's program to buy mortgage-backed securities, experts said. Borrowers could end up paying an interest rate that is one-eighth of a percentage point higher than before, said Scott Simon, a managing director at Pacific Investment Management. The Fed has been gradually phasing out MBS purchases for several months, with little impact on mortgage interest rates.

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