It’s tough being Ben. Rick Perry recently came out calling Ben Bernanke’s quantitative easing policies “treasonous”, claiming they undermine the long-term economic health of our nation. As a proper Texan, he suggested we draw and quarter Ben using only young bulls. Or suggested Ben step down. One or the other. I think I made that first one up.
Today, Philadelphia Fed Chairman Plosser announced that the Fed’s recent promise to keep rates low through mid-2013 might be more hot air than iron-clad agreement. This comes as no surprise considering he dissented with the decision in the first place. So at least he’s keeping his stories straight.
Mortgage Applications edged upwards by 4.1%, marked by an increase in refinance applications and a decrease in purchases. Recent stock volatility has contributed to super low rates which are catching quite a few eyes. The slowdown in purchases doesn’t bode well for homebuilders however, who are on track to build the fewest single-family homes in history this year. While this sucks for them, we certainly don’t need more inventory at this particular moment, at least locally.
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