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Bond-Purchase Stimulus: Housing Recovery

By Bryce Lowe

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In relatively terminology, mortgage rates are truthfully reasonable by historical standards. The piercing incline in recent weeks echoes assumptions of the Federal Reserve will reduce its monthly purchases of $85 billion in Mortgage-Backed Securities and Treasury bonds. It has been this program that has retained longstanding low interest rates.

 

It has been said by many investors that the prevailing employment gains this past June will result in the Fed reductions in its bond purchases. However, this accusation was set to rest, as the central bank's monetary policy committee stated that many Fed members are in favor of seeing more advancements in the job market prior to decreasing the volume of bond purchasing. It has been cautioned that the anticipated alterations to federal funding towards the housing finance system and mortgage interest deduction may disturb the housing recovery overall. Select economists believe the overall economy is far too brittle for the central bank to make such a move at this present time. 

 

Bryce Lowe

Associate Broker | DRE# 01918939

Coldwell Banker Residential Brokerage   

Beverly Hills North Office   

301 N Canon Drive   

Beverly Hills, CA 90210   

    

Direct: 310-777-6305 | Phone: 310-597-1691   

Email: [email protected] | Website:  BryceLoweHomes.com

Published on Aug 01, 2013

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