Fed Reserve recently took several actions to fix the problems with the financial market. Last week, it announced plan to buy $1.15 trillion of long term Treasury bonds and mortgage debts. This morning, it announced a plan to buy up to $1 trillion dollars of troubled loans and securities from banks. The effect of these actions is banks will have lots of cash in hands for lending. eFunding believes these actions may not signal the end of the recession but they mark the beginning of the end. Besides having a positive impact on the stock market (6.8% increase on NYSE and NASDAG), they should also have a positive impact on the real estate market (it’s much harder to measure compared to stocks market) as more credits are available to borrowers. If you have been waiting for the “right” time, this may be it.
Disclaimer: the above reflects an opinion of eFunding, Inc. which is known for being wrong before.
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