After almost two days of the media, news pundits, and economists all weighing in what the Fed will do, the Fed left their short term, Fed Fund Rate, the same.
On the housing side, the Fed stated:
“The housing sector has shown some signs of improvement over recent months. Household spending appears to be expanding at a moderate rate, though it remains constrained by a weak labor market, modest income growth, lower housing wealth, and tight credit.”
And on the credit side, the Fed stated:
“To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve is in the process of purchasing $1.25 trillion of agency mortgage-backed securities and about $175 billion of agency debt. In order to promote a smooth transition in markets, the Committee is gradually slowing the pace of these purchases, and it anticipates that these transactions will be executed by the end of the first quarter of 2010.”
Though the Fed did state that economy is still weak and their past actions will continue, the economy is starting to strenghten. They also don’t see inflation in the future even though the PPI came in hotter than expected.
The bond market closed about where it opened which means that mortgage interest rates remained basically where they started this morning.
Tomorrow, the Initial Jobless Claims will be released. Economist feel that this number will remain low due to the seasonal jobs. Watch for this number to jump up again after the holidays.
And as always, I will report daily on twitter @mmtgsolutions on the mortgage interest rates and what to expect for the day. If one of these reports moves the market in a significant manner, I’ll write about it here.
Please remember, I welcome your comments to this and my other posts.
To an inspiring week,
Betsy Moore
206-331-2749
Twitter Updates
12 January 2010 at 7:10 am
Thanks for the post. I saw some positive points there.