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Daily Mortgage Rates News – Bernanke Sees Recovery in the Housing Market

Posted on | May 5, 2009 | 3 Comments


ben-bernanke-housing-market-recoveryToday the Fed Chairman gave his testimony on the economic outlook before the Joint Economic Committee.  In his testimony he stated that “we continue to expect economic activity to bottom out, then turn up later this year.”  One of the key elements of the assessment is that the housing market is beginning to stabilize.  I am not completely sure what he means by stabilize but he is the Fed Chairman so we will give him the benefit of the doubt.

He continues by stating that “an important caveat is that our forecast assumes continuing gradual repair of the financial system.”  Then Mr. Bernanke reiterates that banks will have the “assurance that equity capital from the Treasury under the Capital Assistance Program will be available as needed.”  WHAT?!?

So first you tell us that the housing market is beginning to stabilize.  You then proceed to tell us that all your economic forecasts are dependant on the gradual repair of the financial system.  You ice the cake with the grand finale that the Treasury will continue to provide capital for the banks.  Oh yeah, the economic outlook is definitely looking bright!

Well, I guess Ole Ben gave us an economic outlook but it is solely dependent on the financial system.  NO SHIT!  I think anyone who can speak English could have told us that.  “The outlook for this economy is dependent on the repair of the financial system.”  What knowledge and research has been bestowed upon us?!?

Well, now that we know the sky is blue I guess we can assume that Ben and his misfits will continue to sink trillions into mortgage backed securities which should send mortgage rates lower.  The Fed eased greatly on the amount of purchases (ONLY $5 billion) last week so mortgage rates might not decline as much as usual over the short term.  Overall we should still continue to see rates fall.

Category: Daily Mortgage Rates News
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Comments

3 Responses to “Daily Mortgage Rates News – Bernanke Sees Recovery in the Housing Market”

  1. Church of Cowherd» Mortgage Rates Decline Below 4.8% with the Help of the Obama Mortgage Plan
    May 5th, 2009 @ 5:44 pm

    [...] Daily Mortgage Rates News – Bernanke Sees Recovery in the Housing Market [...]

  2. » Subprime Blogger / Daily Mortgage Rates News - Bernanke Sees … » Subprime Mortgage Refinance
    May 5th, 2009 @ 8:06 pm

    [...] news by admin « The New York Times: Overview of the Credit [...]

  3. Eye's Wide Open
    May 6th, 2009 @ 7:20 am

    Quotation: “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” Jefferson

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