Today is FED day and here’s your market update
Today wraps up another all important 2 day Fed meeting. The suits will be announcing their rate decision and policy statement at 2:15 pm ET this afternoon. Nothing expected as far as key target rate changes go. All eyes and ears will be focused on the tone and direction of the statement that is delivered. As we all know the Feds plan to continually purchase Mortgage Backed Securities has continued to hold mortgage rates down and assist in burning off this excess inventory. Part of the potent trifecta that is made up of low rates, low prices and first time home buyer credits.
We will be watching closely to determine the Fed’s level of commitment going forward. Just as important as the MBS purchase program are comments related to the health and direction of the overall economy. After all this morning played host to some interesting numbers:
- GDP down 6.1% (better than expectations of -6.3%)
- Consumer spending is up 2.2%
How’s that for a mixed bag? There were some other relative bright spots in today’s economic data that indicate we are still heading in a positive direction. Also indicative of a change is the fact that I have been hearing that agents are wishing for more inventory…WOW what a difference a few weeks can make! The end of the foreclosure moratorium is expected to grant that very wish in the next few weeks by dumping pent up and previously prohibited foreclosure inventory on to our “multiple” offer market.
Quickly…rates are doing what rates have been doing and that’s a good thing! Still revolving around 5% (a touch below right now) as the epicenter. Good work Fed! Please let me know if you have any questions or if you have any clients that we can assist you with. We would love to be a part of what you are doing.
Your Trusted Advisor, Jeremy House, C.M.P.S.
