Tag Archives: Federal Reserve

When the Federal Open Market Committee completed its two-day meeting at the beginning of May, it issued the usual six-paragraph post-meeting statement.

As the housing market experiences a burgeoning recovery with rising prices, an uptick in sales, and an increase in housing starts, Federal Reserve Governor Elizabeth A. Duke points out purchase-originations remain "subdued," especially among individuals with less than stellar credit scores. While originations are down across the board, "[t]he drop in originations has been most pronounced among borrowers with lower credit scores," Duke said at the Housing Policy Executive Council Thursday in Washington, D.C.

Only 4 percent of respondents in a recent Zillow survey are not at all worried about a bubble resulting from the Fed's monetary policy that is keeping mortgage rates down.

After examining mortgage application data throughout April, Capital Economics sees "mounting evidence that mortgage-dependent buyers are starting to play a fuller role in the housing market recovery." Compiling information provided by the Mortgage Bankers Association (MBA), Capital Economics found that total application volume was up 3.5 percent from March to April. In its latest Weekly Mortgage Applications Survey (for the week ending May 3), MBA reported a 7.0 percent increase in applications.

The percentage of banks reporting stronger demand for mortgage loans rose in the second quarter, the Federal Reserve reported, with more banks easing lending standards.

Rates fell all around in Freddie Mac's Primary Mortgage Market Survey for the week ending May 2.

With a swipe at both the President and the Congress and concerns about downside risks to the economy, the Federal Open Market Committee voted 11-1 Wednesday to leave interest rates unchanged and to continue its program of purchasing agency mortgage backed securities and longer term Treasury securities to maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative. Kansas City Fed President Esther George cast the lone negative vote.

Banks with higher concentrations of commercial real estate (CRE) lending have higher failure rates, according to a report from the OCC.

Pro Teck recently examined the effect of the Federal Reserve's commitment to keep interest rates low on home prices, which have historically increased during such programs.

With an upbeat assessment of the economy, the Federal Open Market Committee (FOMC) voted 11-1 Wednesday to leave interest rates unchanged and to continue its program of purchasing agency mortgage-backed securities (MBS) and longer-term Treasury securities to "maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative." Kansas City Fed President Esther George, who opposed a similar action in January, cast the lone dissenting vote.