Actually, the increased debt undertaken by the Gov should push yields on Treasuries higher thus causing mortgage rates to follow, including FNMA and FREDDIE MAC backed loans
I’d watch for the 10 Year to head north of 5.25 before the end of the year – ergo – more downward pressure on housing prices.
Who won here? I’d say anybody who may have been buying FNMA and FREDDIE MAC Sub Debt debt within the past month.
