The U.S. housing market’s perceived responsiveness — via rising mortgage interest rates and lower-than-expected new-home sales in July — to the Federal Reserve’s talk of “tapering” back the amount of bond purchases it makes each month might lead the Fed to delay or alter its implementation of the taper.
Global bond markets, tracking the U.S. Treasurys market, have been affected by new-home sales plummeting in July, Business Insider noted.
“(Given the assumption that housing would continue strong with rising mortgage interest rates), refinancing activity was down sharply, and the incoming data would need to be watched carefully for signs of a greater-than-anticipated effect of higher mortgage rates on housing activity more broadly,” read a portion of a Fed committee’s July meeting notes, recently made public, as reported by Business Insider.
Source: Business Insider
