The cost of mortgages and other loans could decline as a result of today's decision by the Federal Reserve to buy up to $300 billion of Treasury securities during the next six months and an additional $750 billion worth of mortgage-backed securities.
The decisions were made by the Fed's Open Market Committee which said it was taking the actions because the nation's economy has gotten worse in the last two months.
"Information received since the Federal Open Market Committee met in January indicates that the economy continues to contract. Job losses, declining equity and housing wealth, and tight credit conditions have weighed on consumer sentiment and spending. Weaker sales prospects and difficulties in obtaining credit have led businesses to cut back on inventories and fixed investment," the committee said in a statement. .
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The committee left the discount rate .5%.
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