Bernanke throws homebuyers a bone with bond-buying pledge

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
(iStock)

Mortgage applications skyrocket in holiday week

Mortgage applications skyrocket in holiday week
The total supply of single-family homes declined 40 percent to 3.3 months in October (iStock)

Single-family home sales dip in October, but up 41% from last year

Single-family home sales dip in October, but up 41% from last year
(iStock)

Mortgage requests surge ahead of Thanksgiving

Mortgage requests surge ahead of Thanksgiving
Prices increased 6.6 percent year-over-year in September (iStock)

US home prices surged 6.6% in September

US home prices surged 6.6% in September
(iStock)

US home sales rose again as inventory hit all-time low

US home sales rose again as inventory hit all-time low
Housing starts rose almost 5% last month

Housing starts rose almost 5% last month

Housing starts rose almost 5% last month
The increase put an end to the “recent slump” that gripped the purchase market over the past seven weeks (iStock)

Over the slump? Home-purchase mortgages jump

Over the slump? Home-purchase mortgages jump
(Getty, iStock)

Homebuilder confidence soars to another record high

Homebuilder confidence soars to another record high
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...