The HSH blog published its predictions for the real estate and mortgage markets for 2013, including the Federal Reserve‘s policy to end Operation Twist.

It came as no surprise to most involved in the market of the Committee’s decision on Wednesday to continue the purchase of additional mortgage-backed securities at a pace of $40 billion a month, meaning a new effort to keep mortgage rates low and improve the economy as a whole. 

Here’s a bit from the blog:

Finally, an important item to understand: The Fed has removed hard dates concerning the expiration of their programs designed to keep rates low. Instead, the Fed has replaced end dates with market-based guidelines.

The Fed is looking for a very specific set of conditions to occur before they make any changes, explains Gumbinger. “It’s a more balanced approach, and allows them to tweak policy instead of ending or beginning anything at a specific time.” It also means the Fed has the ability to run these programs indefinitely.

To read the full entry click here. 

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