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. 

Most Popular Articles

FHA loan limits increasing for almost all of U.S. in 2020

Thanks to increases in home prices in 2019, the Federal Housing Administration loan limit will increase for nearly all of the country in 2020.

Dec 05, 2019 By

Latest Articles

HousingWire is growing. Come join us

2019 has been a year of tremendous audience and product growth for HousingWire and we couldn’t be prouder. But we’re not ready to rest on our laurels. Far from it. In fact, 2020 promises to be an even bigger year for HousingWire.

Dec 06, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please