30 YEARS MORTGAGE INTEREST RATE MAYBE FALLING DOWN TO THE $3.75% TO 4.25% RANGE ????? (SEPTEMBER/22/2013)
THE MIGHTY MO - MOMENTUM
by Chip Anderson | ChartWatchers
Think about WHY the Fed left the purchases at $85 billion. They clearly don't like what they're seeing ahead in terms of economic growth. They almost certainly don't like what's been happening to home construction stocks during the interest rate rise since May. Check out the rise in the 10 year treasury yield since May and the impact it's had on home construction stocks:
Housing is a key component of our economy. The Fed has to pick its next battle. Beginning on the path of tapering would send interest rates rising further, almost definitely causing a further freefall in housing. The problem is that the Fed knows our economy is not strong enough right now to handle a further rise in rates and further decline in housing. And a rapidly declining home construction index would destroy confidence. So apparently their choice was an easy one.
by Chip Anderson | ChartWatchers
Think about WHY the Fed left the purchases at $85 billion. They clearly don't like what they're seeing ahead in terms of economic growth. They almost certainly don't like what's been happening to home construction stocks during the interest rate rise since May. Check out the rise in the 10 year treasury yield since May and the impact it's had on home construction stocks:
Housing is a key component of our economy. The Fed has to pick its next battle. Beginning on the path of tapering would send interest rates rising further, almost definitely causing a further freefall in housing. The problem is that the Fed knows our economy is not strong enough right now to handle a further rise in rates and further decline in housing. And a rapidly declining home construction index would destroy confidence. So apparently their choice was an easy one.
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