Mortgage markets improved for the second consecutive week last week as demand for U.S. mortgage-backed bonds remained high. A series of economic reports showed strength in housing and a stability in jobs. Wall Street looked past it, however, to send mortgage rates to their lowest levels in history. One week into the Federal Reserve's newest bond-buying program, the stimulus appears to be working. According to Freddie Mac, the average 30-year fixed rate mortgage rate slipped to 3.49% last week for borrowers willing to pay an accompanying 0.6 discount points at the time of closing. Discount … [Read more...]
What’s Ahead For Mortgage Rates This Week : September 17, 2012
Mortgage markets improved last week as the Federal Reserve introduced new economic stimulus. The move trumped bond-harming action from the Eurozone, and a series better-than-expected U.S. economic data. The 30-year fixed rate mortgage rate dropped last week for most loan types, including for conforming, FHA and VA loans. 15-year fixed rate mortgage rates improved, as well. Mortgage rates are back near their lowest levels of all-time. Last week's main event was the Federal Open Market Committee's sixth scheduled meeting of 2012. Wall Street expected the Fed to launch a third round of … [Read more...]
Simple Explanation Of The Federal Reserve Statement (September 13 , 2012)
The Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent Thursday. For the eighth consecutive meeting, the vote was nearly unanimous. Just one FOMC member, Richmond Federal Reserve President Jeffrey Lacker, dissented in the 9-1 vote. The Fed Funds Rate has been near zero percent since December 2008. In its press release, the Federal Reserve noted that the U.S. economy has been expanding "at a moderate pace" in recent months, led by growth in household spending. However, "strains in global financial markets" … [Read more...]
Simple Explanation Of The Federal Reserve Statement (August 1 , 2012)
The Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent Wednesday. The vote was nearly unanimous. Only one FOMC member, Richmond Federal Reserve President Jeffrey Lacker, dissented in the 9-1 vote. The Fed Funds Rate has been near zero percent since December 2008. In its press release, the Federal Reserve noted that the U.S. economy has "decelerated somewhat" since January. Beyond the next few quarters, though, the Fed expects growth to "remain moderate" and then gradually pick up. There was no mention of … [Read more...]