Federal Reserve likely to start QE-3 very soon
After releasing their minutes of the Federal Reserve Open Market Committee meeting from November, more quantitative easing is projected by buying up to one trillion dollars of mortgages. This would keep mortgage companies very liquid and able to make more mortgage loans. In the past, from lack of confidence, these mortgage companies/banks just used the money to buy more treasury bills and tightened their mortgage standards. Hopefully this time around, with the economy starting to stabilize they in fact start making mortgage loans again. This is just what the housing market needs.