08
Sep
By Jim Hasek
Market Outlook, ,

What’s Ahead For Mortgage Rates This Week – Sept 8, 2014

Last week's housing-related economic news was slim, likely due to the Labor Day holiday Monday. On Tuesday, the U.S. Commerce Department reported that construction spending for July increased by 1.80 percent as compared to June's revised reading of 1.0 percent and expectations of a 1.0 percent increase for July. The Federal Reserve released its Beige Book report Wednesday; the collection of anecdotes from business contacts within the 12 Federal Reserve districts indicated that the general economy was strengthening as well as labor markets. The Fed noted a shortage of skilled workers. New construction and home sales grew modestly, but the…
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02
Sep
By Jim Hasek
Market Outlook, ,

What’s Ahead For Mortgage Rates This Week – Sept 2, 2014

Last week's economic news included several reports related to housing. The Case-Shiller and FHFA reports for June showed a further slowing in home price growth. New home sales for July fell short of the expected reading, but pending home sales exceeded expectations. The details: Case-Shiller, FHFA: June Home Price Growth Slows The Case-Shiller 10 and 20-City Home Price Index for June moved from May's year-over-year reading of 9.40 percent growth to 8.10 percent in June. Home prices grew by 1.00 percent on a month-to-month basis in June as compared to May's reading of 1.20 percent. Demand shrank due to increasing…
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18
Aug
By Jim Hasek
Market Outlook, ,

What’s Ahead For Mortgage Rates This Week – Aug 18, 2014

Last week's economic news brought little housing-related content, but several economic reports in other sectors contributed to overall perceptions of the economy. In a speech given in Sweden, Fed Vice President Stanley Fischer noted that the economy might be in a period of "secular stagnation." This condition is expected to keep interest rates low for longer than expected. A survey of small business owners showed that confidence increased by 0.70 in July. Job openings for June increased from 4.60 million to 4.70 million. Readings for several reports fell shy of expectations and new jobless claims were higher than expected. Economic…
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11
Aug
By Jim Hasek
Market Outlook, ,

What’s Ahead For Mortgage Rates This Week – Aug 11, 2014

Last week's housing related news was minimal, but a Federal Reserve survey of senior loan officers revealed that although credit standards for commercial and industrial loans as well as credit cards are easing, current mortgage credit standards are more stringent than in 2005. This could be a contributing factor to slowing housing market gains while other sectors of the economy are recovering at a faster pace. Qualified Mortgage Rules Impact Non-Conforming Mortgages The Senior Loan Officers survey also noted that qualified mortgage rules have slowed approval of prime jumbo mortgages and non-traditional home loans. This suggests that applicants falling outside…
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04
Aug
By Jim Hasek
Market Outlook, ,

What’s Ahead For Mortgage Rates This Week – Aug 4, 2014

Last week's economic news included a number of housing related reports. According to the National Association of REALTORS®, pending home sales dropped by 1.10 percent in June. The S&P Case-Shiller Home Price Index reports for May noted that home prices are growing at a slower rate of 9.30 percent year-over-year than April's year-over-year growth rate of 10.80 percent. Construction spending was also lower in June. The Fed's FOMC statement indicated that asset purchases connected to quantitative easing will cease in October, but that the current target federal funds rate is expected to stay in place "a considerable period" after asset…
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31
Jul
By Jim Hasek
Market Outlook, ,

FOMC Statement: Asset Purchases to end in October, Labor Market Stronger

The Federal Reserve's Federal Open Market Committee (FOMC) released its customary statement at the conclusion of its meeting on Wednesday. FOMC members oversee the Fed's monetary policy. In recent months, investors and economists have speculated on whether or not the Fed would continue tapering its asset purchases under its latest quantitative easing (QE) program, and whether the Fed would raise its target federal funds rate of 0.00 to 0.250 percent. According to its statement, FOMC members plan to continue tapering monthly asset purchases of Treasury securities and mortgage-backed securities until asset purchases under the QE program conclude in October. FOMC…
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