Categories: blog

Is Bernanke driving investors toward housing? | South Salem NY Real Estate

All eyes and ears were on Federal Reserve chairman Ben Bernanke Thursday as the Federal Open Market Committee announced another round of quantitative easing in the form of mortgage-backed securities purchases.

What’s clear from Bernanke’s Q&A session with the media is that while savers are not gaining on their deposits under zero-interest-rate policies, the majority of the FOMC sees an advantage to creating stability in the housing sector through low interest rates to entice buyers.

“We are understanding of the fact that holders are receiving low returns,” Ben Bernanke said when asked about the hit savers are taking in today’s low interest rate environment. “But low interest rates support other assets that Americans hold such as homes.”

The Fed also remained committed to keeping the federal funds rate low through at least mid-2015 while saying Operation Twist will last throughout the rest of the year. 

While fielding questions from the media, Bernanke subtly hinted that the chairman sees improvements in housing, and the Fed remains committed to ensuring those gains are not lost. “To the extent that home prices begin to rise, consumers will feel the market is healthier,” Bernanke said. As prices rise, people will be more likely to buy homes.”

Bernanke reaffirmed the reserve’s commitment to stroking the nation’s stubborn unemployment rate.

Robert Paul

Robert is a realtor in Bedford NY. He has been successfully working with buyers and sellers for years. His local area of expertise includes Bedford, Pound Ridge, Armonk, Lewisboro, Chappaqua and Katonah. When you have a local real estate question please call 914-325-5758.

Recent Posts

Out of Sevice with brain injury since November.

Just back out of hospital in early March for home recovery. Therapist coming today.

1 year ago

Existing home sales down 28% | Katonah Real Estate

Sales fell 5.9% from September and 28.4% from one year ago.

1 year ago

Single-Family Housing Contraction Continues | Bedford Hills Real Estate

Housing starts decreased 4.2% to a seasonally adjusted annual rate of 1.43 million units in…

1 year ago

Closed Median Sale Price in Hudson Valley/NYC Markets Declined by 2.50% in October | Bedford Real Estate

OneKey MLS reported a regional closed median sale price of $585,000, representing a 2.50% decrease…

1 year ago

Building Materials Prices Decline for Second Consecutive Month | Pound Ridge Real Estate

The prices of building materials decreased 0.2% in October

1 year ago

Mortgage rates drop with inflation drop | Bedford Corners Real Estate

Mortgage rates went from 7.37% yesterday to 6.67% as of this writing.

1 year ago

This website uses cookies.