Today the Federal Reserve will issue its statement on interest rate policy. No doubt with what is happening in Japan, the decision will be interest rate friendly. There is no question in my mind that the Fed will do all it can to help housing by being accomodative and lend support to this important part of the economy. Remember, to heal the financial system, you have to heal the assets the banks own. What are those…….mortgages and what asset collateralizes those assets………homes. Bottom line: If you want to heal the credit system you have to heal the assets being held in the credit system.
The housing market is still struggling, however, this writer thinks that it is getting its sea legs. With the wind / Fed at our back, it looks like our sails are starting to catch a breeze and the boat is moving albeit slow yet towards its destination of price stability.
What do you see in your local market? Do you think the market is getting back on its feet?