Saturday, September 24, 2011
Wells Fargo's Weekly Economic & Financial Commentary- September 23, 2011
- Housing starts fell 5.0 percent month-over-month to a 571,000-unit annualized pace, as both single and multi-family starts declined.
. Permits for new resdential projects increased for the third time in four months, however, rising to a 620,000-unit pace.
- Existing home sales rose 7.7 percent in August, lifting the annualized rate of sales to more than 5 million for the first time since April.
. All four regions reported increased sales, but cash-only and distressed properties still comprised a substantial share of purchases.
- The Federal Reserve announced it will sell $400 billion of short-term Treasury assets already in its portfolio and use the proceeds to purchase longer-dated Treasuries.
. The Fed also announced that starting in October it will reinvest maturing agency debt into agency mortgage-backed securities in the secondary market.