Financial Times FT.com

Stage set for mortgage refinancing

By Saskia Scholtes and Michael Mackenzie in New York

Published: March 19 2009 00:30 | Last updated: March 19 2009 00:30

The Federal Reserve’s commitment to buy hundreds of billions of dollars of US Treasuries and mortgage securities on Wednesday set the stage for a wave of mortgage refinancing that could boost bank revenues and spur consumer spending, said analysts.

Jay Brinkmann, chief economist at the Mortgage Bankers Association, said lower rates for government bonds and mortgage securities should quickly feed through to lower bank lending rates on main street.

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