In This Issue:
Housing Should Continue to Add to Economic Growth
- As expected, the FOMC kept rates unchanged, but much of the uncertainty has been centered on the Fed’s open-ended bond purchases. Although the statement did not provide explicit guidance, the policy paragraph did provide a hint. We suspect, if the recent pickup in the labor market proves sustainable, the Fed may begin cutting back on the amount of purchases sooner than initially expected.
- Housing indicators released during the week including starts and existing home sales continue to reflect a modest housing recovery. With the recovery still intact, housing will continue to add to economic growth throughout the year.