20
Nov
By Jim Hasek
Market Outlook, ,

FOMC Minutes: Economy Growing, Housing Lags

Minutes of the Federal Open Market Committee (FOMC) meeting held October 28 and 29 were released Wednesday. The report suggests that the U.S. economy continues to improve, although the annual inflation rate remains near 1.50 percent and short of the committee's goal of 2.00 percent. Falling crude oil prices were cited as a cause of faltering inflation rates. The minutes indicated that FOMC members expect inflation to remain below the 2.00 percent benchmark for the next year or so. The minutes did not reveal an exact date for raising the target federal funds rate, which is currently 0.00 to 0.250…
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03
Nov
By Jim Hasek
Market Outlook, ,

What’s Ahead For Mortgage Rates This Week – November 3, 2014

Last week's economic news brought mixed developments as pending home sales moved to their second highest level of 2014. The Federal Open Market Committee (FOMC) announced the expected end of asset purchases under its quantitative easing program. In its post-meeting statement, the committee noted improvements in overall economic conditions labor markets as indications of better than expected economic trends. The Case-Shiller Home Price Index reports for August showed continued slowing in housing price gains. Mortgage rates were higher, but consumer confidence exceeded expectations. Pending Home Sales Rise, Case-Shiller Reports Slower Price Gains The National Association of REALTORS® reported that pending…
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14
Oct
By Jim Hasek
Market Outlook, ,

What’s Ahead For Mortgage Rates This Week – October 14, 2014

Economic news was lean last week as the first week of the month tends to be calm in the aftermath of the rush of end-of-month reporting. Of note was CoreLogic's report on housing markets, the release of the minutes from the most recent FOMC meeting and lower mortgage rates reported by Freddie Mac. CoreLogic Reports Lowest Home Price Gains in Almost Two Years August home prices hit their slowest growth rate in nearly two years according to CoreLogic data released last Tuesday. Annual home prices grew by 6.40 percent in August as compared to July's reading of 6.80 percent. Year-over-year…
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22
Sep
By Jim Hasek
Market Outlook, ,

What’s Ahead For Mortgage Rates This Week – Sept 22, 2014

Last week's economic news largely concerned the Federal Reserve's FOMC meeting statement and a post-meeting conference given by Fed Chair Janet Yellen. The FOMC statement indicated that the Fed continued its wind-down of Treasury and mortgage-backed securities and that its purchases are expected to cease after the next FOMC meeting. The FOMC statement said that committee members find the economy to be improving at a moderate pace and currently strong enough to further reduce the QE3 monthly asset purchases. The Fed seeks to achieve and sustain its dual mandate of maximum employment and an inflation rate of 2.00 percent. While…
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25
Aug
By Jim Hasek
Market Outlook, ,

What’s Ahead For Mortgage Rates This Week – Aug 25, 2014

Last week's economic news brought several reports related to housing. The National Association of Home Builders (NAHB) Wells Fargo Housing Market Index for August rose by two points to 55, which was its highest reading in seven months. Components of the NAHB HMI include builder surveys on conditions related to upcoming sales of new homes, which rose by two points for a reading of 65. Builder sentiment concerning present sales conditions also rose by two points to 58. Builder views on prospective buyer traffic rose from 39 to 42. Readings above 50 indicate that more builders viewed housing market conditions…
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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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