I think we’re going to see a temporary substantial improvement. I emphasize the words temporary and substantial.

…We’ll get a bounce for a few quarters and then it will fade out. We’re now going through the getting-better phase for a while…I don’t worry if they have instruments to do it. What worries me is the political hurdle they’ll be facing.

…The Fed can set the benchmark rate to be near zero and yet longer-term rates have a life of their own. The benchmark rate may not matter nearly as much as it used to.

Martin Feldstein

—MBA mortgage purchase/refinance application indexdown 19%: from 548.2 to
to 444.8 in the week ended June 26.
—MBA refinancing index – down 30%, the lowest in seven months
—MBA purchasing index – down 4.5%

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