Tag Archives: Interest rates

Even though the housing sector has shown further improvement, the Federal Open Market Committee dodged another rate increase this month like many in the industry predicted.

This week’s minutes from the meeting are expected to provide explanation and insight into what the Fed's plans are this month.

As housing demand continues to rise, interest rates remain at historical lows, credit conditions ease, and the labor market improves, home price growth continues to climbs but for how much longer?

The Federal Open Market Committee (FOMC) stood still Wednesday as all eyes in the mortgage industry awaited their announcement to leave the federal funds rate at its current level.

Although economic conditions such as employment and inflation are not ideal, Kansas City Federal Reserve Bank President Esther George is pushing for the central bank to make one of those four increases the industry has been waiting on in March at the next Federal Open Market Committee meeting.

Employment numbers are disappointing, inflation remains off target, stocks are volatile, and the overall housing market is running at a slower pace, but William Dudley, President and CEO of the Federal Reserve Bank of New York says things may be better than the current picture shows.

Although mortgage interest rates continue remain at historical lows, potential buyers are steering clear of the housing market.

Federal Reserve officials' stance on monetary policy is mostly affected by the direction of the economy. Although they raised the federal funds rate in December, current economic conditions may not warrant another increase for awhile.

Given the rough start to 2016, some in the industry are beginning to question if the Fed will dial back on its December decision or ease up on the four "gradual increases" projected for this year.

Mortgage lenders stand to gain more business from 30-year mortgage holders who qualify and could benefit from refinancing, but the refinancing population is shrinking at a rapid rate. So where are all the eligible refinancers?