The minutes from the July 28th to 29th, 2015 Federal Open Market Committee meeting released Wednesday confirmed that the economy is still unprepared for a hike in the federal funds rate, but the increase is imminent. In the Committee members' discussion on economic conditions and monetary policy most participants "judged that the conditions for policy firming had not yet been achieved, but they noted that conditions were approaching that point.”
In terms of housing, the committee found that recent data on housing starts and permits as well as the higher levels of sales and prices are signs of continued recovery in the market, according to the minutes.
In addition, looser lending standards for residential mortgages evidenced in the most recent SLOOS will further progression in the housing sector. However, a couple of committee members said they “did not expect this sector to be a major contributor to economic growth over the remainder of the year.”
The Federal Housing Finance Agency has announced the adoption of a final rule establishing the housing goals for Fannie Mae and Freddie Mac for both single-family and multifamily housing for the years 2015 through 2017. The final rule establishes the following single-family housing goals for Fannie Mae and Freddie Mac for each of the three years from 2015 to 2017:A low-income home purchase goal of 24 percent, a very-low income home purchase subgoal of 6 percent, a low-income areas home purchase subgoal of 14 percent; and a low-income refinance goal of 21 percent.