Have you ever been on a roller coaster? Not the little one that comes to your state fair every year, but the big one that you spend days preparing yourself for that inevitable ride of your life. Well, comments by Fed chairman Ben Bernanke after last week’s FOMC meeting caused quite the upheaval in financial markets, and put investors on the proverbial roller coaster, as they anticipated the potential effects of any rollback of the Fed’s policy of quantitative easing (QE). Chairman Bernanke said that the Fed may begin reducing its $85 billion monthly purchase of Treasury securities and MBS toward the end of this year. Continue reading
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Buying A Home? Why You Must Have A Home Inspection
Many home buyers have found the perfect house, signed on the dotted line and may think they’ve watched enough home improvement shows to know if the home they’re getting is in good shape. Unfortunately, some buyers make the mistake of skipping a home inspection in order to save a little cash.
Even if a home has already stolen your heart and you’re ready to pay for it as-is, you need to bite the bullet and hire a home inspector to let you know what repairs and financial repercussions await you. Continue reading
Should I Lock Or Float This Week? – Fed Minutes Expose Rising Interest Rate Risk
The 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. Continue reading
Don’t Get Fooled By Tricky Real Estate Terms
When looking to buy or sell Sacramento real estate, confusing terminology can leave you feeling somewhat uneasy. From a multitude of numbers to marketing jargon, property listings can give you an overwhelming amount of information — and it’s hard to know what’s important. Continue reading
Why The Sudden Change in Rates? Ask The Fed
The 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: Continue reading