Last week's economic news was highlighted by Fed Chair Janet Yellen's speech in Philadelphia. Although Chair Yellen alluded to future Fed rate hikes, she did not specify when Fed policymakers would next raise the target federal funds rate. Increases in the fed funds rate typically signal increases in consumer credit and home mortgage rates. Last week's speech was seen as a precursor to the Federal Open Market Committee statement that will occur at the conclusion of next week's FOMC … [Read more...]
What’s Ahead For Mortgage Rates This Week – June 6, 2016
Last week's housing related news was limited to Construction Spending and Freddie Mac's mortgage rates survey, but labor reports suggested an economic slowdown may be in the works. Construction Spending Slips in April, Mortgage Rates Mixed According to the Commerce Department, overall construction spending slipped in April to -1.80 percent as compared to March's reading of +1.50 percent and May's expected reading of +0.70 percent. Residential construction spending was 1.50 percent lower, which … [Read more...]
Fed Holds Steady on Federal Funds Rate
In its post-meeting statement, the Federal Open Market Committee (FOMC) of the Federal Reserve announced its decision not to raise the current federal funds rate of 0.25 to 0.50 percent. Although FOMC members acknowledged further improvement in the U.S. economy and jobs markets, the committee cited the following as influencing its decision not to raise the current federal funds rate: Household income continued to rise, but consumers have "moderated" their spending. Inflation is expected to … [Read more...]
Existing Home Sales Jump, Builder Confidence Holds Steady
Home buyers kicked the spring home shopping season into gear and boosted sales of pre-owned homes in March. Existing home sales rose 5.10 percent in March according to the National Association of Realtors®. 5.33 million pre-owned homes were sold in March against expectations of 5.30 million sales and February's reading of 5.07 million sales on a seasonally adjusted annual basis. Demand for homes remains strong in spite of rapidly escalating prices in many areas. Short supplies of available … [Read more...]
