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Tag 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? This Week- August 19, 2013

Mortgage Rates Monday the 19th, 2013The market has opened this morning right where it left off last week. It continues to deteriorate. But, first let’s recap what happened last week. Looking at the graph to your right, the last 5 out of 6 trading days got worse for mortgage rates – note the “red escalator” on the far right of the chart. In addition, last week wasn’t kind to stock market investors as well.

Here is a review of the major events of the week: Read the rest of this entry »

 
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Posted by on August 19, 2013 in Housing Analysis

 

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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 : June 24, 2013

Mortgage_Market_on_June_25thHave 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. Read the rest of this entry »

 
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Posted by on June 26, 2013 in Housing Analysis

 

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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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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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Mortgage Approvals : Documents To Gather For Your Lender

Bank guidelines loosenAccording to the Federal Reserve’s quarterly Senior Loan Officer Survey, it’s getting easier to get approved for a home loan.

Between July – September 2012, fewer than 6% of banks tightened mortgage guidelines — the fourth straight quarter that’s happened– and roughly 10% of banks actually loosened them.

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Posted by on November 14, 2012 in Mortgage Guidelines

 

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