Fed wasted it's moeny tryhing to lower mortgage rates....

http://www.bloomberg.com/apps/news?pid=20601068&sid=az5zUKHWnMTg Jan. 4 (Bloomberg) -- The Federal Reserve’s program to purchase $1.25 trillion of mortgage-backed securities has had little or no effect on home-loan rates, according to a paper prepared for the National Bureau of Economic Research. The decline in mortgage rates since 2008 to slightly below historical averages relative to... [more]

http://www.bloomberg.com/apps/news?pid=20601068&sid=az5zUKHWnMTg Jan. 4 (Bloomberg) -- The Federal Reserve’s program to purchase $1.25 trillion of mortgage-backed securities has had little or no effect on home-loan rates, according to a paper prepared for the National Bureau of Economic Research. The decline in mortgage rates since 2008 to slightly below historical averages relative to Treasury yields instead can be seen as reflecting lower concern that Fannie Mae and Freddie Mac will default on their obligations and a decrease in interest- rate volatility and other causes of prepayment risk, John B. Taylor and Johannes C. Stroebel, economic professors at Stanford University in Stanford, California, wrote in the paper posted today on the NBER Web site. [less]