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Steve Chiotakis: The Fed’s move is having an immediate impact in the mortgage market.
From North Carolina Public Radio, here’s Marketplace’s Janet Babin.
Janet Babin: If you’re looking to refinance your mortgage and you’ve got good credit, Google “refinance.” You’ll see some eye-poppingly low rates. Quicken Loan’s site is promising 4.5 percent. Other sites are offering rates near record lows, too.
Dean Barber with Barber Financial Group says the Fed’s decision to buy up government bonds and mortgage-backed securities could help turn the housing market around.
Dean Barber: The hope, in my opinion, that could come from this is that people can refinance their loans and we can slow the rate of foreclosures.
Barber fears, though, that lower rates won’t help enough homeowners. He’s also worried about the value of the dollar. It fell against most currencies yesterday in reaction to the Fed’s buying frenzy.
Edward Hadas is with BreakingViews.com. He explains that this cash infusion could have a good effect for awhile, but:
Edward Hadas: Too much cash for too long will unleash a lot of inflation.
For the moment, the Fed is willing to take that gamble, with unemployment rising and consumer confidence low.
I’m Janet Babin for Marketplace.