The central bank pulled the trigger on interest rates, but analysts don’t expect a “Taper Tantrum Two.”
MarketWatch correspondent Andrea Riquier canvasses a few go-to analysts and observers and asserts that any sudden-impact derailment of housing's current slow recovery trajectory is unlikely, both on the mortgage interest rates front and on overall demand. She writes:
Even if the Fed goes ahead with a second increase in the spring, the MBA expects mortgage originations to rise 10% and forecasts a 15% jump in housing starts in 2016. In a statement released after the Fed announcement, the group noted that it will continue to monitor the central bank’s plans for the mortgage bond securities it amassed after the financial crisis.