There was a lot of economic activity that kept investors watching every move. As the Mortgage and Real Estate News reports:
With a Fed meeting, Treasury auctions, and major economic data on this week’s schedule, investors were watching closely for unfavorable news. In the end, there were no major surprises. Little changed in the Fed statement, auction demand was at average levels, and the economic data was generally close to expectations. The biggest influence on mortgage markets turned out to be turmoil in Greece, which caused investors to seek the relative safety of US bonds, and mortgage rates ended the week a little lower.
Beyond Greece’s economic trouble, investors have been watching to see whether other smaller European countries would slip into economic turmoil. As a result, investors shifted funds to safer investments, including US Treasuries and mortgage-backed securities (MBS).
In a move that will have direct impact on the housing market, the Mortgage and Real Esta News reports:
Prior to Wednesday’s Fed meeting, it had been reported that support was growing among Fed officials to begin sales of mortgage-backed securities (MBS) from the Fed’s portfolio. The Fed statement made no reference to MBS sales, however. As expected, the Fed made no change in the fed funds rate. The statement described the economy in slightly more positive terms. Also, pending Home Sales, a leading indicator for the housing market, will come out on Tuesday.
While incremental, many of these moves in the economy can prove positive for the real estate market, both in Los Angeles and nationwide.