Mercatus Center Senior Research Scholar and real estate finance expert Anthony Sanders reacts to the Federal Reserve’s announcement:

“The Fed shocked most with an open-ended purchase program, especially in Fannie and Freddie mortgage-backed securities. It won’t help housing because with tight credit, only wealthier Americans with perfect credit benefit from lower mortgage rates. Additionally, seniors get hurt again with aggressive Fed action because bank deposit rates fell. This action will not help the housing market, it will not help unemployment, but it will create bubbles in asset prices.”