Last week we saw the announced end to the FED's QE-2 program. The announcement was expected by all of the experts, which means it should have been a Non-News item. The outcome proved slightly different, many experts are now saying that buyers were not in the Federal market simply because they did not want to compete with the US Federal Reserve. When faced with a short term opponent who has far more weight to throw around it seem obvious to sit on the side lines and wait until they leave. this appears to be exactly what has happened with respect to Treasury purchases through the FED's Open market auctions.
The past few months we have seen the Federal Reserve purchase more then 40% of the auctioned T-Bills with fewer real investors in this arena. The exist of the Fedreal Reserve from these auctions has brought more competition and hence driven the price of the bonds up which pushes the yields down. We have also seen the effects of a better then expected earning period for the first quarter of 2011. The overall effects while not certain should lead to a very robust summer selling season nationwide.
Rates should remain low for the next several months and with consumer confidence on the rise we might be in the beginning stages of the real estate turn around. Lending guidelines are also beginning to show signs of life as well, albeit only some sense of normalcy. This is yet another very healthy sign of a recovering real estate market and for all of the dedicated professionals out there this could happen at a better time.
Mortgage rates are low, turn times are quick and the guidelines are opening up. Now is the time to move the fence sitter into action. We all have a decision to make everyday, are going to be part of the solution or part of the problem? I love the overall optimistic attitude of this industry and are glass is indeed have full, make it a great day!
Comments(0)