No doubt by now you have heard that the Federal Reserve in their meeting late last week decided to not raise the bench mark interest rate. Business concerns saw this as a welcome signed as could be seen in the Stock Market's rally late last week.
Yet as Jim Belote notes in his MMG Weekly, the Fed's actions and reports on inflation(still low) are only one part of the story as relates to home mortgages and the housing market.
This week we hear another side of the news key to the housing market: Existing Home Sales and New Housing starts. Buyer and Seller confidence will be the key to these numbers. With interest rates at near historic lows(still), we will learn if the buyers and sellers(sellers become buyers) have scrambled to get these low rates and make a move.
If you are waiting for the Fed to stop buying bonds, you are waiting for interest rates to go up! You would be better buying today!!
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