Market Update
This is a
Market Update from
Greg Gale of
The Gale Group from
Nova Home Loans.
Greg and his Team are part of my
Network of Professionals I work with. If you have any questions regarding Loans, Financial Information, buying or Selling your Home or Real Estate Please give us a call. We are looking forward to helping you with your needs.
Thank you
Joseph D’Ambrosio
Joseph D'Ambrosio
Real Estate Consultant / Realtor
West USA Realty
 |
|
Mortgage bond prices were higher this week, which pushed mortgage rates lower. Rates improved Monday after reports that Fed Vice Chair Yellen looked like the clear choice to replace Chairman Bernanke when he steps down. The positive movements were erased Tuesday and Wednesday morning as traders positioned themselves for the tapering announcement by the Fed Wednesday afternoon. That did not materialize and rates improved Wednesday after the Fed meeting. We lost some of the improvements late in the week. St. Louis Fed President James Bullard said Friday that, "This was a close decision here in September" and this reignited the tapering concerns. Mortgage interest rates finished the week better by about a .25% despite the extreme volatility.
Fed Not Done
The Federal Reserve shocked the financial markets this week with the announcement that the asset purchases will continue. The majority of analysts believed the Federal Reserve would announce a tapering of the bond buying program at the conclusion of the two day meeting.
The Committee indicated they will continue to purchase “mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month….these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodating, which in turn should promote a stronger economic recovery and help to ensure that inflation, over time, is at the rate most consistent with the Committee's dual mandate.”
The majority of officials indicated they would prefer the first rate hike in 2015. They cut the forecast for 2013 GDP growth and kept the forecast for core inflation unchanged. This was overwhelmingly favorable for mortgage interest rates in the short term. Now is a great time to take advantage of the recent dip in mortgage interest rates. The tapering issue looms over the financial markets. A cautious approach to float/lock decisions would be wise in this environment.
Lastly, I wanted let you know of our upcoming classes. We have a class with Dane Briggs on RPR, the NAR backed software that is FREE for agents and creates phenomenal CMA reports. This class will also have Tina Tamboer from The Cromford Report, keeping us up to date on current market trends.
** See Attached for dates, times, and location **
Please give us a call if you have any financial questions or if you need a second opinion on a loan scenario.
We look forward to serving you
|
|
|
STOP!
Would you like to know what is happening in your neighborhood?
Would you like to know the value of your home?
Do you need help deciding whether to sell or not or would you like to know if now is the right time to buy?
I would be very happy to get you that information.
Just Reply and let me know.
"Opening The Door To Opportunity and Your Future Home..."
|
No comments:
Post a Comment