While we aren’t beyond the pandemic by any stretch of the imagination yet, the fundamentals have grown stronger. The Federal Reserve tried to impart that message last Wednesday, while still pointing out that they were prepared for any change in course. For the first time, the Fed talked about discussions to slow asset purchases.
What the Committee said and what it could mean for the housing market is the subject of our Big Story.
The Big Story
If you were just to look at what actually changed after Wednesday’s Federal Reserve announcement, it wouldn’t have made a blip. Nothing changed. However, you deal with enough purchase contracts in home negotiations to know that language matters.
While interest rates stayed the same and there was no immediate movement on asset purchases, the Fed did say it was discussing when to back off asset purchases. Because those asset purchases include $40 billion worth of mortgage-backed…