In This Issue
Last Week in Review: The Fed met and the volatility continued. Find out how home loan rates were impacted.
Forecast for the Week: The last week of June will be busy, with news on housing, inflation, consumer confidence and more.
View: Been wondering what those #Hashtags are really about, and if they really do make a difference? Learn more below.
Last Week in Review
“I’m free…free fallin’.” Tom Petty. Mortgage Bonds continued to fall last week as the Fed met and more volatility followed. Read on to learn what happened.
After last week’s meeting of the Federal Open Market Committee (FOMC), the Fed released its Policy Statement, noting that the downside risks to the outlook for the economy and labor market have diminished. Especially important: There was no mention of tapering their Bond Purchase program known as Quantitative Easing.
However, in the press conference that followed, Fed Chairman Ben Bernanke said, “Assuming the economy and labor conditions evolve as the Committee expects, the Fed anticipated it would begin tapering later this year and to finish by mid-2014.” This mixed message caused a sell-off in both Stocks and Bonds, adding to the volatility the markets have seen of late.
In economic reports of note, there was more good news in the housing sector as Existing Home Sales rose by 5.18 million units annualized in May. This is an increase of 12.9 percent from May 2012 and the highest rate since 5.44 million units were sold in November 2009. Housing Starts also rose by 7 percent in May, and though they came in lower than expected, they are actually up a whopping 28 percent since May 2012. [Read more…]