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. Continue reading “Fed Statement Reveals Interesting News For Real Estate”

A Simple Explanation Of Bernanke’s Statement Today (April 25, 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 fifth consecutive month, the Fed Funds Rate 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. It is expected to stay near-zero through 2014, at least. Continue reading “A Simple Explanation Of Bernanke’s Statement Today (April 25, 2012)”

Mortgage Rates Get Worse Today in Reaction to the Federal Reserve Statement (March 13, 2012)

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

For the fourth consecutive month, the Fed Funds Rate vote was nearly unanimous. Just one FOMC member dissented in the 9-1 vote.

The Fed Funds Rate has been near zero percent since December 2008. It is expected to remain near-zero through 2014, at least. Continue reading “Mortgage Rates Get Worse Today in Reaction to the Federal Reserve Statement (March 13, 2012)”

Federal Reserve Wary Of European Crisis

FOMC Minutes January 24-25 2012The Federal Reserve has released the minutes from its 2-day meeting January 24-25, 2012.

The Fed Minutes is a summary of the conversations and debates that shape our nation’s monetary policy. It receives less attention than the Fed’s more well-known, post-meeting press release, but the Fed Minutes is every bit as important.

To rate shoppers in Sacramento , for example, the Fed Minutes can give clues about whether mortgage rates will generally rise or fall in the coming months. Continue reading “Federal Reserve Wary Of European Crisis”

Mortgage Rate Watch This Week : December 19, 2011

Fed Funds RateIt is the week before Christmas and hopefully you aren’t thinking of mortgages, but instead planning for some good down-time with your family and friends. But, if you are in the process of buying or refinancing, Mortgage markets did improve last week, but not by much; not enough to move conventional mortgage rates in California in any significant way.

Wall Street watched as Eurozone leaders expressed little willingness to increase aid programs within the region, and as the Federal Reserve voted against new economic stimulus for the United States. The Fed Funds Rate remains near 0.000 percent and QE3 was not introduced. Continue reading “Mortgage Rate Watch This Week : December 19, 2011”