Mortgage rates are falling. Has the Fed’s plan to jumpstart the economy already kicked into gear?
Rates on 30-year mortgages plunged this week to their lowest levels since January, and are poised to fall further. That comes just one day after the Federal Reserve launched a new effort to prop up the flailing housing market by buying long-term government bonds.
Their goal is two fold 1) stimulate the economy by making it more affordable to buy a home and 2) cajole investors into riskier assets -- such as stocks -- by making the safer Treasuries, less and less appealing.
The housing part of the equation is certainly attracting investors. As Pete Najarian told you on Wednesday, options activity in the Homebuilders ETF suggests big money is bullish on the sector in the days and months ahead.
But not everyone sees it that way.