Fed Will Help The Housing Market Continue It’s Recovery!
The Federal Reserve’s decision to forgo a planned tapering off of bond-buying caught most by surprise yesterday. That included the Dow and the S&P. After the announcement made by Treasury Chair Ben Bernanke, both rocketed to record highs.
Most analysts had expected the Fed to implement a slow withdrawal of its bond-buying program … a program that presently sees about $85 BILLION worth of bonds being purchased each month.
If yesterday’s Fed move was meant to counteract a slowdown and re-stimulate the housing market … it worked. Interest rates reacted quickly and moved downwards.
Pair this Fed announcement along with the report released by the Census Bureau showing new building permits and housing starts a bit lower than had been projected … and you understand why the Fed’s decision is seen as such good news by housing professionals … and those hoping to buy or refinance a home.
The rising interest rates seen over the last month or so (a direct result of the prediction that the Fed would taper its bond-buying soon) has definitely taken a toll. Besides the obvious negatives that directly affect hopeful new home buyers, homebuilders, and real estate professionals … there’s the fact that fewer housing starts stagnates the economy through the lack of job growth and spending power.
Meanwhile, local Atlanta homebuilders are still expressing confidence at levels not seen for several years. But concerns were definitely being raised over what was being seen and heard from the Treasury over the last few weeks.
The fact that the Fed recognized that their stimulus was still needed and changed course on actions to curtail bond buying (at least in the short-term) is a huge positive.
My suggestion to anyone that is sitting on the fence regarding an Atlanta home purchase … pick-up the phone and contact me – 678-585-9691. I can refer you to three of the best lenders in Atlanta – so you can take advantage of some of the best mortgage rates in history.