Federal Reserve to get out mortgage backed security

Federal reserve is moving to get out of mortage backed security business by the end of next month.  And hoping private investors including goverments of other countries will step foward instead.  The Washington Post reported this week that the goverment bought billions of dollars this week in these mortgage securties to help stabalize the U.S housing market; ending of this practice indicates the Obama Adminstration in turning down their emergency effort. If this works and private investors step foward then there will be enough backing to keep rates down, but if investors don’t step foward then rates could rise and threaten recovery.

Source: Gil Gross Real Estate today radio show