Posted September 13, 2012
Thursday started with a higher than expected Jobless Claims number, delivering 382,000 claims last week. This is yet another indicator that the labor market is continuing to struggle.
Following the Claims report, and after months of speculation and debate, the Fed’s Monetary Stimulus Program, also known as Quantitative Easing (Round 3), finally arrived Thursday afternoon. We’ve already seen improvements in mortgage rates, and the Triangle Housing market stands to be a huge beneficiary of QE3. Here are a couple of interesting points about the latest round of easing from Washington.
- The Fed leaves the program open ended and commits to buying $40B per month of mortgage-backed securities until there is significant improvement in the job market.
- They restated their commitment to keep rates low through at least mid-2015.
The markets were very happy with the Fed program as well, with the Dow closing up over 200 points to its highest level in almost five years.
This is obviously great news for consumers who are in the market to either buy a home or to refinance their existing home. Thanks to QE3 it looks like Triangle Housing fundamentals will continue to get stronger throughout the fall and into the first quarter of 2013.