FOMC – Lori Blank & Associates

04

Aug

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…

28

Jul

By Lori Blank

Market Outlook

What’s Ahead For Mortgage Rates This Week – July 28, 2014

Last week's economic news brought several housing-related reports, which indicated varying results in terms of gauging the economic recovery. FHFA reported slower growth of home prices associated with Fannie Mae and Freddie Mac mortgages, but sales of existing homes as reported by the National Association of REALTORS® surpassed expectations and May's reading. Sales of new homes slumped to their lowest level in three months. Weekly jobless claims were lower than expected and also lower than for the prior week. FHFA Home Prices Grow at Slower Rate, Existing Home Sales Higher than Expected The Federal Housing Finance Agency (FHFA) reported that…

21

Jul

By Lori Blank

Market Outlook

What’s Ahead For Mortgage Rates This Week – July 21, 2014

Last week's economic news offered a variety of indications that the economic recovery continues, but some readings missed their expected levels. The Philadelphia and New York branches of the Federal Reserve Bank reported higher than anticipated manufacturing for their respective regions and new jobless claims were lower than expected. Fed Chair's Senate Testimony Hints at Coming Interest Rate Hike Federal Reserve Chair Janet Yellen testified that the Fed might have to raise interest rates sooner than expected if the economy continues to outperform the Fed's projections. Ms. Yellen said that the central bank presently estimates that the first rate increases…

14

Jul

By Lori Blank

Market Outlook

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

Last week brought news from the Fed as two Federal Reserve Bank Presidents made speeches and the Federal Open Market Committee (FOMC) of the Fed released the minutes of its last meeting. The minutes reveal the Fed's intention to wrap up its bond-buying program in October with a final purchase of $15 billion in mortgage-backed securities (MBS) and Treasury bonds. No economic news was issued Monday following of the 4th of July holiday. Further indications of a strengthening labor market were seen. May job openings reached their highest level since June 2007, and quits and layoffs fell from April's reading of…

07

Jul

By Lori Blank

Market Outlook

What’s Ahead For Mortgage Rates This Week – July 7, 2014

Last week's economic news was mixed, but economic reports for Non-Farm Payrolls and the National Unemployment rate suggest a strengthening labor sector. Pending Home Sales surpassed expectations in May and conversely, construction spending was lower than expected. Here are the details. Pending Home Sales Reach Highest Level in Eight Months The National Association of REALTORS® reported that pending home sales in May rose by 6.10 percent over April's reading. May's reading was 5.20 percent lower than for May 2013. The index reading for May reached 103.9 as compared to April's index reading of 97.9. Results for all regions were positive…

16

Jun

By Lori Blank

Market Outlook

What’s Ahead For Mortgage Rates This Week – June 16, 2014

Last week's economic news was quiet in the housing sector, but retail sales and employment-related reports provided indications of less consumer spending and reduced consumer confidence. On Monday, James Bullard, St. Louis Fed President, commented that inflation appears to be rising. Although not a voting member of the Fed's Open Market Committee (FOMC), inflation has been a topic of concern to the FOMC in recent years. Mr. Bullard had previously noted that inflation was stable. His remarks set the stage for this week's FOMC meeting and press conference by Fed Chair Janet Yellen. Analysts expect the Fed to continue tapering…

09

Jun

By Lori Blank

Market Outlook

What’s Ahead For Mortgage Rates This Week – June 9, 2014

Last week's economic news was mixed. Construction spending grew, but fell below the expected level. CoreLogic reported that April home prices continued to rise, but did so at their slowest growth rate in more than a year. Employment reports for private sector and government jobs indicated fewer jobs, but the national unemployment rate was steady. Here are the details: Construction Spending, Home Price Growth Slows Construction spending reported by the Department of Commerce reached $953.5 billion annually, and increased by 0.20 percent month-to-month against expectations of an 0.80 percent increase and the March reading of 0.60 percent growth. According to…

28

May

By Lori Blank

Uncategorized

FOMC Minutes: Committee Discusses “Normalizing” Policy

April's meeting of the Fed's Federal Open Market Committee was held along with the Board of Governors of the Federal Reserve System. Meeting minutes released Wednesday indicated the committee's interest in "normalizing" its monetary policy. This included the FOMC's ongoing commitment to tapering its asset purchases under its quantitative easing program. The committee agreed to taper the Fed's monthly asset purchases by $10 billion to $45 billion per month. Committee members discussed raising the target federal funds rate, which now stands at 0.00 to 0.25 percent, but the minutes clearly stated that this topic was undertaken as part of "prudent…

01

May

By Lori Blank

Uncategorized

FOMC Noted Retail Sales In March Reached Highest Level Since September Of 2012

The FOMC of the Federal Reserve released its customary statement after its meeting concluded April 30. FOMC members said that the economy is improving after a winter lull caused by poor weather. The national unemployment rate remains high, although some improvement in labor markets was reported. Fiscal policy is restraining economic growth, although FOMC said that the restraint is diminishing. FOMC Monitors Inflation, Further Reduces Asset Purchases The FOMC statement reflected members' concerns about the inflation rate remaining below its goal of two percent, and said that this could eventually impact economic recovery. The Fed expects inflation to approach its…

28

Apr

By Lori Blank

Uncategorized

What’s Ahead For Mortgage Rates This Week – April 28, 2014

Last week's economic news supported recent reports that home sales were fewer and home prices increased, but did so at a slower pace. The NAR reported a slower pace of existing home sales, and FHFA reported a slower year-over-year rate of growth for home prices on properties financed by Fannie Mae and Freddie Mac. The U.S. Commerce Department reported that new home sales fell to their lowest level since July 2013. Mortgage rates rose for fixed rate mortgages, but were unchanged for 5/1 adjustable rate mortgages. Here are the details: Existing Home Sales Slow, Moderate Growth In Home Prices March…