There has been a great deal of movement in mortgage rates recently partly due to uncertainty about an expected new Federal stimulus program. Federal officials offered little details about such program. In the end, the result was merely a small decline in mortgage rates for the week.
In efforts to help boost the economy, the government is expected to begin purchasing additional Treasury securities. An important question is how large will the program be? Investors expect the government to reveal the details of the program today at its next FOMC meeting. Comments from Fed officials indicate that they are still discussing what approach to take. The government may decide on a fixed quantity over a set time frame, or they may select a more flexible program in which they decide how much to purchase. Mortgage rates have already benefitted from investor expectations for the program, and they likely will remain highly sensitive to changes in the outlook for the government’s plans.
last week’s housing sector data generally showed modest improvement.While foreclosure issues were in the spotlight, September Housing Starts increased to the highest level since April. The October NAHB Home Builder confidence index rose to 16 from 13 in September, which was the first increase in five months. “Builders are starting to see some flickers of interest among potential buyers,” according to the NAHB.
In efforts to help boost the economy, the government is expected to begin purchasing additional Treasury securities. An important question is how large will the program be? Investors expect the government to reveal the details of the program today at its next FOMC meeting. Comments from Fed officials indicate that they are still discussing what approach to take. The government may decide on a fixed quantity over a set time frame, or they may select a more flexible program in which they decide how much to purchase. Mortgage rates have already benefitted from investor expectations for the program, and they likely will remain highly sensitive to changes in the outlook for the government’s plans.
last week’s housing sector data generally showed modest improvement.While foreclosure issues were in the spotlight, September Housing Starts increased to the highest level since April. The October NAHB Home Builder confidence index rose to 16 from 13 in September, which was the first increase in five months. “Builders are starting to see some flickers of interest among potential buyers,” according to the NAHB.
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