The MBA said the average 30 yr mortgage rate for the week ended Friday fell below 5% for the first time since late May, at 4.97%. In response, refi’s rose 17.4%, the highest since May while purchases were up 5.6%. This news comes as the FOMC discusses the fate of their purchases of MBS/Agency debt and Treasuries. They will reiterate that the buying of Treasuries will end in Oct as they are just about done with the $300b plan. The buying of MBS and agency debt will likely continue until year end. As of Sept 16th, they have purchased a combined $810b of the $1.45t that is planned. Combining low rates, cheaper homes and the home buying tax credit, housing in certain areas has caught a bid so the question of course is what happens when the Fed is done buying MBS and whether the tax credit gets extended past Nov 30th. ABC confidence rose 3 points to -46. The Euro Zone manufacturing and services index rose a touch to 50.8 but was .5 point less than expected.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.