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Triangle Business Today

Monetary policy - Fed expects to keep rates low through 2014

Posted January 25, 2012

The Fed Meeting Adjourned today – the Fed’s Monetary Policy Statement language rang loudly this afternoon. Their Monetary stance now states that they expect to keep rates exceptionally low through late 2014. Their low rate commitment timeline has increased by a year. Treasuries reacted immediately to the news, with the 10 Year Yield dropping below 2%. Great news for Triangle housing and homeowners.

On to other news from today, Mortgage Applications slipped in volume for the week ending January 20th as Mortgage Rates inched up. The Mortgage Application Index showed a drop of five percent which was in sharp contrast to the twenty percent rise we saw last week.

According to the National Association of Realtors, pending home sales were down 3.5% in December – that decline was a bit more dramatic than expected. Good news though, in that year over year figures for pending sales data was up 5.6% for that same time frame.

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About this Blog:

Jeremy Salemson, CEO of Corporate Investors Mortgage Group, blogs about economic trends and data and their impact on Triangle business. Each week, he interviews a Triangle-area business leader for a personal look at the local economy.