- The Federal Reserve's accommodative policy has resulted in the lowest interest rates since the early 1950s.
- Ten-year constant-maturity Treasury yields had averaged 2.0 percent through September before the Federal Open Market Committee's statement, already on track for the lowest monthly average in the 60-year history of the series.
- Thirty-year and 15-year single-family fixed rates attained new lows in Freddie Mac's Primary Mortgage Market Survey in September.
- The likelihood of an extended period of both relatively low short- and long-term interest rates is helpful news for the housing market's recovery.
- Coupling monetary with fiscal stimulus could accelerate growth in 2012 if the fiscal initiative operates in tandem.
Quotes
Attributed to Frank Nothaft, Freddie Mac, vice president and chief economist.
- "Financial worries among consumers are likely holding back home sales, which remain lackluster despite the most affordable home-buying market in decades. Boosting job and income growth among households will support consumer confidence and also stimulate household formation. With monetary policy expected to keep interest rates low for a while, affordability will remain high for potential homebuyers. In the meantime, many will choose to rent."
