PIMCO’s Gross: Mortgage rates will hit 4.5%…

VIDEO here, well worth watching

WooHoo to that news, (right now the 10 yr has moved up over 3% again) from CNBC:

Government action to shore up the economy and improve the housing climate probably will send mortgage rates to 4.5 percent, Bill Gross, co-CEO at the Pimco bond fund, said Monday.

-snip-

“I think at some point we’re going to see a 4.5 percent mortgage rate and the 10-year Treasury rate capped at some level,” he said. “When the Fed comes in to buy Treasurys that will be a big day.”

Looking ahead at the government initiatives he expects to see in an announcement Tuesday, Gross said the government likely will inject more capital into needy banks only. He also said the government will expand the Term Asset-Backed Securities Loan Facility, or TALF, which aims to free up the ABS market….

“We need a clear plan tomorrow that moves away from nationalization, and private capital will come in,” Gross said….

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February 9, 2009. Tags: , , , , , , , . CITI, Economy, FDIC, Finance, Foreclosures, Housing, Labor Department, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St.

One Comment

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