The Fed announced today that they plan on buying $300 billion in Treasury Securities in an effort to bolster housing. The goal in doing so; as said after a unanimous vote in Washington today was;
“To provide greater support to mortgage lending and housing markets, the Committee decided today to increase the size of the Federal Reserves balance sheet further by purchasing up to an additional $750 billion of agency mortgage- backed securities,” the Federal Open Market Committee.
Jim Cramer the well know CNBC guru told his audience tonight “Ladies and Gentlemen, its time to buy a house”. Cramer known for speaking his mind and often voicing his opposition to the current administration commended the Fed today on their decision to put the country first. He said “Bernanke has single-handedly created the 4% mortgage rate”. A rate that is needed to boost a lackluster housing environment.
I spoke with a business partner of mine today and he had a very simple way describing the outcome of todays events “these rates are a Godsend”. I guess at this point, the question may be; what else are we waiting for?