Big Ben speaks; home builder sentiment jumps
Posted July 17, 2012
Mr. Ben Bernanke – aka our Fed Chairman, was on Capitol Hill Tuesday giving his annual speech to Congress. Many economic pundits were hoping that he would provide some clarity on the Fed’s next move, but alas he did not. He did however offer the following insight as to the Fed’s concern over a slowing economy. Mr. Bernanke indicated that the FOMC is prepared to take further action as they deem appropriate. He noted that the reduction in unemployment is likely to be “frustratingly slow”. Overall the FOMC considers inflation risk to be relatively low right now, and added that they feel economic uncertainty is increasing. On a positive note, he stated that there have been modest signs of improvement in housing, and that New and Existing Home Sales are gradually trending upward. Many economists are now pointing to a September arrival of QE3.
To continue the positive housing news, the July Home Builder Sentiment report jumped six points to a reading of 35, which is now the largest jump in a decade. As we’ve experienced here in the Triangle throughout recent months, it does seem as though housing fundamentals are beginning to improve across the nation as well. The markets were positive today, and Mortgage Rates remain extremely attractive for housing participants here in the US.