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Category Archives: Federal Reserve

When Janet Yellen Speaks, The Market Listens! Mortgage Rates higher

WE thought people only listen when E.F. Hutton speaks. Not true! Looks like Janet Yellen, the new Fed Chair can move markets too. According to the Washington Post yesterday, her optimistic assessment of the nation’s economic prospects, despite recent poor job growth, rallied the stock market. And thus, pulled money from treasuries and mortgage backed securities (MBS) causing rates to go up a bit. We will stay tuned!

CLICK ON GRAPH BELOW for a BETTER LOOK

Rates_spike_today

 

 

 

For More information please contact Dan Tharp @ 916-257-1470 or email Dan at dtharp@Guildmortgage.net

 The information contained in this training has been prepared and distributed for educational purposes only.  This training information shall not be construed as a guarantee of loan approval; All loans are subject to underwriter approval.

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Posted by on February 12, 2014 in Federal Reserve

 

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Should I Lock or Float? FED Minutes Reveal Rates Should Climb Before Years End

Federal Reserve to Meet this weekFOMC Minutes Suggest QE Tapering by Year-End

Ben Bernanke, Fed Chairman, blew up the bond and mortgage markets a month ago with his comments that the Fed is preparing to begin reducing the monthly purchases of treasuries and mortgage-backed securities. Rates spiked, and left folks shopping for mortgages, shaking their heads. The minutes for June’s meeting of the Federal Open Market Committee (FOMC) suggest that committee members are mostly in agreement that the current quantitative easing program (QE) should begin winding down by year-end, but the committee minutes are very clear about the committee’s intention to monitor inflation and ongoing economic and financial developments before taking action to reduce the current rate of QE. Read the rest of this entry »

 
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Posted by on July 11, 2013 in Federal Reserve

 

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Should I Lock Or Float This Week? – Fed Minutes Expose Rising Interest Rate Risk

Rates get worseThe unrelenting selling in the MBS markets has gotten a bit out of hand, and has a panicked feel. This may have something to do with the Fed, who suggests that the present quantitative easing (QE)  program may be modified in the near future. This is not a surprise as Fed chairman Ben Bernanke said, at some point the Fed would begin exiting, likely inch by inch but obviously not in one fell swoop as the market decline over past few weeks seems to imply (see chart).

The current QE program involves the Fed purchasing $85 billion per month in mortgage-backed securities (MBS) and Treasury bonds. The Fed’s goal with QE is keeping long-term interest rates, including mortgage rates, low. Read the rest of this entry »

 
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Posted by on May 28, 2013 in Federal Reserve

 

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Why The Sudden Change in Rates? Ask The Fed

Federal Open Market Committee Minutes Released 4-10-2013The minutes for the Federal Open Market Committee (FOMC) meeting held March 19 and 20 were released on Wednesday April 10, 2013. These periodic meetings by the FOMC cover a wide-ranging group of topics that impact the overall economy in the United States.

The decisions made and acted upon from the FOMC meetings often sway the real estate and residential financing markets. Some highlights of the recent FOMC minutes for the March meeting include: Read the rest of this entry »

 
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Posted by on April 11, 2013 in Federal Reserve

 

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Fed Statement Reveals Interesting News For Real Estate

Fed Meeting Minutes ReleasedThe Federal Reserve’s statement after yesterday’s Federal Open Market Committee (FOMC) meeting left no doubt as to the Fed’s dual commitment to keeping long-term interest rates down and encouraging economic growth. But there were a few subtle changes to the Fed’s current bond-buying program made during today’s FOMC meeting.

The Fed buying bonds and Mortgage Backed Securities (MBS) works by boosting bond prices, which typically helps with keeping mortgage rates lower. Instead of the Fed’s monthly purchase of $85 billion in bonds and MBS per month, they will now make the call if they want to reduce these purchases, depending how well the economy is performing. Instead of turning this quantitative easing (QE) OFF or ON, they can use the concept of a “dimmer” switch instead. Read the rest of this entry »

 
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Posted by on March 21, 2013 in Federal Reserve

 

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Explanation Of The Fed Statement Today (December 12 , 2012)

Putting the FOMC statement in plain EnglishThe Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent Wednesday.

For the tenth consecutive meeting, the FOMC vote was nearly unanimous. Richmond Federal Reserve President Jeffrey Lacker was the lone dissenter in the 9-1 vote. Read the rest of this entry »

 
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Posted by on December 12, 2012 in Federal Reserve, Mortgage Blog

 

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Explanation Of The Fed Statement Today (October 24 , 2012)

Putting the FOMC statement in plain EnglishThe Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent Wednesday.

For the ninth consecutive meeting, the vote was nearly unanimous. And, also for the ninth consecutive meeting, Richmond Federal Reserve President Jeffrey Lacker was the lone dissenter in the 9-1 vote.

The Fed Funds Rate has been near zero percent since December 2008. At the close today, Mortgage Backed Securities ended the day a little worse (rates/fees went up a bit) on the news… Read the rest of this entry »

 
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Posted by on October 24, 2012 in Federal Reserve

 

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