CoreLogic Home Price Insights (HPI) reported today that home prices did heat up this year. Across the country prices rose by 7% from September 2016 to September 2017. The numbers also showed an increase from August to September of this year by .09%. These figures include distressed sales.
An interesting tidbit about the CoreLogic HPI is the data incorporates more than 40 years of repeat-sales transactions for analyzing home price trends. The CoreLogic HPI forecast for the coming year shows … Continue reading
Brexit happened and mortgage Bonds, thus mortgage rates, reacted delivering a great opportunity to homeowners and homebuyers. But what the heck is Brexit and what does it have to do with mortgage rates?
What is Brexit?
Brexit is a term coined from the withdrawal of Britain from the European Union – the British Exit. The people voted last night and the expectation was Britain would remain in the EU. Surprise, surprise…instead, the British walked out, withdrew from the union and … Continue reading
Mortgage rates are often thought to be directly linked to the Federal Reserve. It’s common for many people to mistakenly think The Federal Reserve actually sets mortgage interest rates. The media contributes to this misunderstanding. But it is incorrect. Mortgage rates are based on the pricing of mortgage bonds which are collateralized by mortgages, known as mortgage-backed securities.
The Federal Reserve
The Federal Reserve sets the Fed Funds Rate (FFR). The Fed Funds Rate is a short-term overnight rate banks charge … Continue reading
“Those were the days, my friend, we thought they’d never end….”
As expected, The Federal Reserve (Fed) stopped the printing press putting an end to its historic 6 year quantitative easing, bond buying program Wednesday while keeping its basic guidance of a near zero Federal Funds Rate for a “considerable time.” The Fed said it was confident the US economic recovery would continue despite a global slowdown.
Yesterday the Federal Open Market Committee concluded its 2-day meeting followed by a one hour press conference with Fed Chair Janet Yellen. The markets were roiled on Janet Yellen’s remarks.
Listen Here or Read Below
The market had been expecting the FOMC to taper another $10B from its bond purchase program. The bond purchase program began with an $85B monthly commitment in purchasing both Treasuries and Mortgage bonds. These asset purchases have artificially prompted up the markets and kept … Continue reading
Ben Bernanke and the Federal Reserve are front and center this week as the Federal Open Market Committee (FOMC) begins its 2-day meeting to evaluate the US economy and set monetary policy. This meeting marks the last for ‘Big Ben’ Bernanke and market participants have been weighing the outlook.
At the December meeting, the FOMC announced it would begin … Continue reading