FOMC minutes released

Well, considering rates are very important to what is happening in our housing markets today, I think it is pertinent to pass along a synopsis of the Fed minutes that were released today at 11am pacific.
Verbiage is very important to note, as it gives direction to the state of the economy and an indicator to traders of the FED direction.

· If trend inflation declines further or the economic outlook worsens, “extended period” of low rates could last “quite some time”
· Members of FOMC believe extended period language wouldn’t preclude prompt policy tightening if needed
· FOMC participants felt underlying inflation likely to stay subdued, and that inflation expectations are “reasonably” well-anchored
· Members are worried about high unemployment, fear recovery won’t be sustained without pickup in jobs
· Constrained household spending due to weak labor markets, tight credit and slow income growth
· Members concerned that the pace of housing activity is leveling off and that foreclosure to remain “quite high”

As this information has just hit the newsreels, It will take a day or two to gauge the market reaction. So far both the bond and the stock markets have responded favorable. It looks like rates are fighting the good fight! Stay tuned