In regards to mortgage trends, one of the biggest factors that occurred this week was the Fed pulling the plug on QE (Quantitative Easing). “As expected, the central bank announced an end to monthly bond purchases, known as quantitative easing, that helped fuel stock gains and increased the Fed’s balance sheet to a record. The Central bank kept its language on keeping interest rates low for a “considerable time” as it ended its two-day meeting…” (cnbc.com). So, we’ll likely see a little reaction with rates drifting upward for a short time, while still remaining quite low. Most economists have said they think the Fed will start raising rates by mid-2015. But global economic weakness, market turmoil and falling inflation forecasts have led some to suggest that the Fed might now wait longer (Assoc. Press, Oct. 29, 2014).
As for the real estate side, a recent article from Oregonlive.com on Oct. 28, 2014, noted a local realtor as saying – “We’ve turned the corner a little bit toward a buyer’s market. The multiple offers have slowed down. Offers are a little more demanding on buyer’s part”. It also noted that Portland’s housing appreciation has decreased slightly from last month – not too much of a surprise for the Fall season. However, the article went on to note that sellers still hold the upper hand in popular areas, where offers are coming in almost before the property is listed. I would like to hear what all of you are experiencing out there in the trenches.
