Wednesday, March 18, 2009

Breaking News: Interest Rates to Drop Near 4%

Bernanke announces new stimulous plan to push down interests rates near 4%. “They wanted to shock the market and they succeeded,” said Ajay Rajadhyaksha, the head of fixed-income strategy at Barclays Capital in New York. If the Fed’s action “succeeds in driving primary mortgage rates” to about 4.25 percent to 4.5 percent, that would increase “affordability, which will in turn lead to increased housing demand.”

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