3 Bits of Great News for Mortgage Reit's - Motley Fool
Another positive article on ARR today from the Motely Fool - below are small parts of the article:
Though Armour released some financial data last week, it didn't reveal the health of its own spread.
It's always darkest before the dawn, however, and recent mortgage news is definitely looking brighter. The Mortgage Bankers Association released numbers showing that refinance activity has slowed, great news for constant prepayment rates.
Another plus in the MBA report notes that 30-year mortgage rates are up around 3.78%, the highest since last August. Short-term rates staying low while long-term rates climb is just the type of news mREITs and their investors love to hear.
Fed debates slowing of QE3
This news is a real crowd-pleaser. The fact that more people are feeling good enough about the economy to dip their toes into the job pool pleases the Fed, making it feel that its open-ended bond purchasing program is working its magic. While many on the Federal Reserve Board also feel this way, there is a growing chorus of members who think the time has come to consider winding down the monetary easing policy. Minutes from the December meeting show that some advocated termination of QE3 by the middle of this year.
So far, there are no firm answers, and it is expected that the Fed will have quite a debate over this issue next month. However, just the whispers, becoming louder and louder, regarding the end of QE3 is music to the ears of mREIT aficionados.