What We're Hearing

Come March 1, the so-called 'spring home buying season' starts with consumers (supposedly) rushing out to buy new abodes, scouring newspaper ads and online listings for their "American dream." A key ingredient for a booming spring is there: rock bottom interest rates. The other key ingredient is absent: a strong job market. This morning the government released the 4Q GDP number: a stunning 5.7%. The stock market initially spiked and then fell limp by late morning. One would think that with the new GDP reading at 5.7% that employment would soon surge, thus helping the housing market but economists are throwing cold water on what the number means for the nation's jobless. Translation: the strong GDP showing is all about "inventory replenishment" and not real growth. Could the nation's economists be wrong? Speaking of economists, Jay Brinkmann of the Mortgage Bankers Association told us earlier in the week that he believes the Federal Reserve will indeed stop buying GSE MBS come March 31 and that private sector investors will fill the void...