to drop mortgage rates. Writing a $300 billion check to buy Treasuries... Fed in Bond-Buying Binge to Spur Growth - WSJ.com In theory, driving up prices on T-bonds will drop t-bond rates, which in turn, pushes mortgage rates down. It won't work this time around because non-depository lenders simply don't have enough warehouse credit available to lend anyway. Betcha mortgage rates barely even move. Spend, baby, spend! This is really getting frustrating.