Having fallen briefly following the announcement of QE3, MBS yields and mortgage interest rates were rising again in the final weeks of October. Of course, the bigger picture remains that mortgage interest rates are extremely low. Moreover, last month brought more evidence that this is helping to stimulate activity among mortgage-dependent buyers, with the Fed’s Senior Loan Officer Survey reporting another big rise in mortgage demand. On the supply side, the visible inventory continued to drop. But there have been some signs that willing sellers are slowly returning, with more households viewing this as a good time to sell. The upshot is that supply may not tighten much further.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services