When the Federal Reserve began talking about scaling back its massive stimulus program this summer, the markets freaked out. But Americans? Not so much.
The Fed has been buying billions of dollars in long-term bonds each month to push down long-term interest rates and boost the housing market. The hint that the Fed might start winding down that program helped drive mortgage rates up an entire percentage point in 2013 – a spike that some worried could damage the sector.
But a new survey released Monday by the New York Fed shows that the volatility in the markets barely made a blip in consumers’ minds. The amount of uncertainty that households have over home prices remained flat through the second half of last year.
Full article at The Washington Post.