HousingWire – Christina Mlynski
Market observers believe the Fed’s continued monthly commitment to acquiring $40 billion in agency mortgage-backed securities has served its purpose, with housing data showing clear signs of improvement. Now that existing home sales and new home sales are rising alongside falling foreclosure inventories, Fed watchers are anxiously awaiting for the central bank to take its foot off the gas pedal. Jay Brinkmann, chief economist and senior vice president for the Mortgage Bankers Association, told MBA Secondary Conference attendees the Fed may start to taper its assets purchase program this fall, with the program ending for good in the first quarter of 2014. Many implications are associated with the central bank’s asset purchases including the impact of continued low rates on employment.