The Federal Reserve's daring move to increase the federal funds rate just before the end of 2015 was no surprise to most, but what the mortgage industry did not know was that this initial move would only the beginning of a series of events.
Minutes from the Federal Open Market Committee meeting outlined that officials have a clear concern for inflation and the broader economy. Some members indicated that the rate hike was a “close call” since inflation and economic conditions remain questionable. However, the Fed does intend to make a few gradual increases throughout the year if economic conditions remain healthy.
Arch Mortgage Insurance Company recently released a report showing that states that produce coil, oil, or natural gas are most at risk home price declines due to falling energy prices. North Dakota, Wyoming, Alaska, West Virginia, and New Mexico have the highest Arch MI Risk Index values. On the other hand, home price declines across the U.S. over the next two years remains low at 6 percent.