With the threat of military action diminishing in Syria, and the - TopicsExpress



          

With the threat of military action diminishing in Syria, and the uncertainty that creates in financial markets, mortgage rates remained fairly docile and stayed relatively flat for the week. Retail Sales numbers did come in slightly lower than expected, but still managed a small increase. This will be an interesting week for financial markets, with all eyes on the Federal Reserve. During its meeting this week, the Fed is slated to decide whether to begin tapering its latest round of monetary supports. According to many analysts, markets have already priced in the effects of the Fed decreasing its bond purchases by $5 to $10 billion per month. If the Fed announces a similar policy change, then rates could easily stay calm and move little. However, if the Fed makes any other move, rates could shift either way. No change in policy could be interpreted as the Fed believing the economy is stumbling, and rates could move downward. If the Fed trims more than $10 billion from its monthly bond purchases, then rates could easily move upward in a hurry.
Posted on: Tue, 17 Sep 2013 00:32:04 +0000

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