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How the federal reserve's printing money impacts housing

By golfplan18   2013 Jun 21, 12:25am   570 views   0 comments   watch (0)   quote      

http://ochousingnews.com/news/how-the-federal-reserves-printing-money-impacts-housing?source=Patrick.net

The FOMC sets target interest rates and directs its traders to either buy or sell securities to meet interest rate targets.When the federal reserve buys Treasuries, the price goes up, and interest rates go down. When the federal reserve sells Treasuries, the price goes down, and interest rates go up. Prior to the financial meltdown in 2008, the federal reserve only bought short-term Treasuries, but in an effort to rescue housing, they began an unprecedented campaign of buying 10-year Treasuries and mortgage-backed securities in order to drive down mortgage interest rates.

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