By now, I am sure you have all heard about the President’s latest directive this week to help troubled homeowners refinance their mortgages, even if their loans are far higher than the value of their homes.
The bigger question should be – Will the big banks adopt the presidents plan? Polls show a majority of Americans are in favor of his plan but we know that means nothing unless the banks and congress make it so. Continue reading →
Wednesday, the Federal Reserve’s Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent. To add impact, the Fed has indicated that they will “likely not raise interest rates until at least late 2014”.
The Fed Funds Rate has been near zero percent since December 2008. To be fair, on Jan 13th we saw rates at their lowest mark in over a year, only to see them deteriorate over the last week and a half. With the Fed news today, we are seeing a marked improvement – but not to the levels we saw January 13th.
For the third consecutive month, the Fed Funds Rate vote was nearly unanimous. Just one FOMC member dissented in the 9-1 vote, objecting only to the language used in the Fed’s official statement.
The outlook for the U.S. economy improved last week, taking the mortgage bond market with it. For the first time this year, conforming mortgage rates rose throughout California from one week to the next.
Foreclosure filings are fewer these days, according to foreclosure-tracking firm RealtyTrac. As a mortgage lender in Sacramento, and living in a state that has been hit hard by massive equity losses, this news is promising.
In December 2011, the number of foreclosure filings nationwide fell 9 percent from the month prior. Not since November 2007 has foreclosure activity been this sparse across the country.