Economic Report – March 23, 2009
Market Review
►A LOOK BACK – Last week the FOMC made headlines with the announcement that they will buy an additional $750 billion of mortgage-backed securities by year-end. Market participants were further shocked by the Fed’s plans to buy up to $300 billion of longer term US government debt over the next 6 months. WOW! The Fed has fired all the bullets from their gun at the economy. Short-term interest rates are near zero and now they have used their ability to purchase mortgage-backed securities in an effort to stimulate the economy. Mortgage rates dropped on Wed. but crept up on Thurs. and Fri. as investors weigh the longer term effects of this.
►WHAT’S AHEAD – This week begins with actions taken yesterday by the Obama administration’s program to clean-up the “toxic” assets currently clogging bank’s balance sheets to enable a smooth flow of capital into the economy’s growth engines. The stakes are high as a plan deemed feasible and well designed has the ability to rally the stock market but a plan viewed as poorly formed could send the stock market quickly lower. The economic calendar is full of releases including the Feb. Existing and New Home Sales, the release of the Feb. Personal Consumption Expenditure Index, Fed Chairman Bernanke testifies to the House Financial Services Committee on AIG and Treasury auctions of $98 billion. A lot of news to be brought to the market.
Greg Burkett
Preferred Home Loan, Ltd.
281/657-0472 x 301 (Office)
713/906-2883 (Cell)
For more information about real estate issues in Katy or West Houston contact Steve Reddell. He is a licensed REMAX real estate agent in Katy, Texas you can trust. You can contact him directly at 281-994-5173 or visit him on the web at Katy Family Homes.
Filed under: Economy/Market, Katy Family Homes
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the last quarter of 2009 seems promising as we have seen lots of signs of econic recovery against the massive economic recession. i hope that in 2010 all our economies would be back on track. recession really sucks.
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