Mortgage Rates Plummet on Fed Action To Purchase Mortgage Securities

The Federal reserve announced the purchase of up to 500 Billion in mortgage backed securities.  According to the Fed,  "This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally," the central bank said in its announcement.

This is great news for consumers who are looking to purchase or for current home owners looking to reduce their monthly mortgage payments.  This is also good news for consumers who may want to convert from an ARM loan.