Bernanke throws homebuyers a bone with bond-buying pledge

TRD New York /
Nov.November 05, 2013 08:11 AM

Federal Reserve Chairman Ben Bernanke pledged last week to continue the bond-buying responsible for record low interest rates, a move that could see interest rates hover at around the 4 percent mark until early next year. Demand for properties fell after Bernanke’s remarks in May that the stimulus program would begin to wind down, but the latest announcement could reverse that trend.

“It’s clear the Fed became concerned about housing over the last month, and that’s why it came out so firmly on the side of bond-buying,” Diane Swonk, chief economist at Chicago-based Mesirow Financial, told Bloomberg News. “After months of talking about ending the program, the statement was crystal clear it would continue, open-ended.”

Though the announcement ends months of uncertainty in the market, it’s clear that the gravy train won’t go on forever.

“‘Open ended’ does not mean unending,” Federal Reserve Board Governor Jerome Powell said in a speech last month, according to Bloomberg News. [Bloomberg News]Hiten Samtani


Related Articles

arrow_forward_ios
Jerome Powell and New York City construction in October 2019 (Credit: Getty Images)

The Fed lowers rates, and once again real estate is loving it

Housing and Urban Development Secretary Ben Carson (Credit: Getty Images, iStock)

HUD wants to jumpstart bank lending on low-income homes

Lenders issued the most mortgages in 14 years last quarter (Credit: iStock)

Nonbank lenders could give serious boost to cooling housing market

Ben Carson on Opportunity Zones, unity and red and black ants: TRD Miami Showcase & Forum

Ben Carson on Opportunity Zones, unity and red and black ants: TRD Miami Showcase & Forum

Home foreclosures dropped nearly 20% in Q3, report shows

Home foreclosures dropped nearly 20% in Q3, report shows

Lennar reports 13% uptick in Q3 profit amid sluggish housing market

Lennar reports 13% uptick in Q3 profit amid sluggish housing market

Federal Reserve Chairman Jerome Powell (Credit: Getty Images)

Fed cuts rates, signaling caution ahead for real estate investors

Miami will see a big dip in home prices during the next recession, according to reports (Credit: iStock)

Miami among most at-risk cities for falling home prices during next recession: report

arrow_forward_ios