DealHunter0 wrote:
sheriff wrote:
It could also have an effect on mortgage rates.
Bingo. Certain members of the Fed are concerned that their policies are creating "asset bubbles" (their words not mine), particularly in junk bonds. Right now, they're in the minority, but if we continue to see excessive risk taking they may gain more supporters and pull back on QE3 earlier than planned, which will increase rates.
WSJ gives ==> Federal Reserve officials expressed growing unease with the central bank's easy-money policies at its latest policy meeting and some suggested the Fed might need to pull them back before the job market is fully back to normal.
Minutes released Wednesday of the Fed's Jan. 29-30 policy meeting showed that officials worried the central bank's easy-money policies could lead to instability in financial markets and might be hard to pull back in the future. The Fed plans to evaluate how the programs are doing at its next meeting March 19 and 20.
Several officials said that the Fed should be prepared to vary the pace of its asset purchases, depending on how the economy performs and its analysis of the costs and benefits of the program, according to the minutes.
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True, Like the way FED supported previously with QEs, now they plan to pull back. Looks like FED may pull back QE3 anytime that brings uncertainity to Real estate, especially new buyers needed loans. For those who has full cash, there may be another opportunity to get a deal soon.
If the FED action is not reversing the whole trend, it at least put a break on the price increase.
The highest impact is on stocks first, then other assets.....Let us see how it goes.
Good, I locked the rate last week at 3.75% Fixed!
