The goal of the Federal Reserve was to purchase mortgage backed securities in order to provide support to the mortgage and housing markets. Since the inception of the program in January 2009, the Fed has spent over $1 trillion in the agency mortgage backed security market, which is basically all of the money it was allocated, and now is scheduled to run out next Wednesday.
What does this all mean? Buckle up, because mortgage rates are going to take-off in 3-2-1….
I hope I’m wrong.