Fed Tapering, the US Housing Market and Long-Term Interest Rates

CEIC Macro Watch, November 29, 2013: The Federal Reserve Board’s (Fed’s) announcement of its intention to begin scaling back (“tapering”) its asset repurchase programme sent the US 30-year mortgage fixed rate to 4.07% in June 2013, a 53 basis points increase from the previous month. The rate peaked at 4.49% in September 2013. Similar rate increases were observed for treasury notes with a 10-year maturity, which rose to 2.30% during June 2013 from 1.93% during the previous month, before rising further to 2.81% in September 2013, as investors factored in an estimated USD 10-15 billion reduction in Fed bond repurchases. The Fed’s subsequent move to postpone tapering on Sept 18, 2013, restored some optimism to the bond and housing markets, with the 30-year mortgage fixed rate falling to 4.22% and the long-term interest rate to 2.62%, as of October 2013. By Adrian Dela Cruz in the Philippines - CEIC Analyst Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog
2nd December 2013 Fed Tapering, the US Housing Market and Long-Term Interest Rates

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