Mortgage Rates Lower Amid Economic Uncertainty

Mortgage Rates Lower Amid Economic Uncertainty

first_imgMortgage Rates Lower Amid Economic Uncertainty Share Fixed Mortgage Rates Freddie Mac Primary Mortgage Market Survey 2015-07-10 Staff Writer As the spring homebuying season comes to a close and Americans cope with the uncertain after effects of the Greek crisis on the economy, the U.S. Treasuries lowered average fixed mortgage rates down to 4.04 percent, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS) results.”Yields on Treasury securities declined this week in response to investor concerns about events in Greece and China,”said Sean Becketti, chief economist at Freddie Mac. “Mortgage rates fell as well, although not by as much as government bond yields.”With the Greece crisis still brewing and Treasury security yields falling, the 30-year fixed-rate mortgage (FRM) averaged 4.04 percent with an average 0.6 point for the week ending July 9, 2015. Last week, the rate averaged 4.08 percent and a year ago the 30-year FRM averaged 4.15 percent.Freddie Mac also reported that the 15-year FRM averaged 3.20 percent this week with an average 0.5 point, down from last week when it averaged 3.24 percent. A year ago at this time, the 15-year FRM averaged 3.24 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.93 percent this week with an average 0.4 point, down from last week when it averaged 2.99 percent. Meanwhile, the 1-year Treasury-indexed ARM averaged 2.50 percent this week with an average 0.3 point, down from last week when it averaged 2.52 percent.”Overseas volatility is likely to persist for some time, providing some restraint on potential U.S. rate increases,” Becketti said. “In addition, the minutes of the June meeting of the Federal Open Market Committee suggest the Federal Reserve will proceed cautiously—monitoring events both overseas and in the U.S. to ascertain the appropriate moment to begin raising short-term interest rates. As a result, mortgage rates may remain in the neighborhood of 4 percent for a while.”The recent June Federal Open Market Committee meeting revealed that although economic activity is expanding moderately and job gains are increasing, the committee decided that the federal funds rate will remain the same at a target range of 0 to ¼ percent.“The Committee continues to judge that the first increase in the federal funds rate will be appropriate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term,” said Janet Yellen, FOMC chair. “At our meeting that ended today, the Committee concluded that these conditions have not yet been achieved. It remains the case that the Committee will determine the timing of the initial increase in the federal funds rate on a meeting-by-meeting basis, depending on its assessment of incoming economic information and its implications for the economic outlook.”The Federal Reserve Bank of New York also touched on the topic of interest rates this week. They recently released their Liberty Street Economics report titled “How Sensitive Is Housing Demand to Down Payment Requirements and Mortgage Rates?” that identified how small of a role mortgage rates play in terms of housing demand.”Our findings suggest that the strength of housing demand is strongly affected by fundamentals (household wealth and income) and also the quantity of available financing (especially for first-time home buyers),” the NY Fed Reserve said. “The price of available financing (that is, the mortgage rate) may play a less important role than commonly thought, although we emphasize that our stylized setting omits certain factors, such as payment-to-income constraints, that may in reality affect households’ ability to qualify for loans.”Click here to view Freddie Mac’s Primary Mortgage Market Survey.center_img July 10, 2015 448 Views in Daily Dose, Government, Headlines, News, Uncategorizedlast_img read more

Disaster Bill Moves to Presidents Desk

Disaster Bill Moves to Presidents Desk

first_img in Daily Dose, Featured, Government, News Disaster Bill Moves to President’s Desk June 4, 2019 301 Views Sharecenter_img On Monday, the House of Representatives voted to pass H.R.2940, which provides $19.1 billion in recovery funds for disaster-affected areas including Puerto Rico. The House passed the bill after a 10-day recess, voting 354-58. As the Senate had already voted to pass the bill 85-8 on May 23, the bill will now move on to President Donald Trump for his sign-off.”We must work together quickly to pass a bill that addresses the surge of unaccompanied children crossing the border and provides law enforcement agencies with the funding they need,” said top Appropriations Committee Republican Kay Granger of Texas on Fox News. “The stakes are high. There are serious—life or death—repercussions if the Congress does not act.”U.S. Reps. Randy Weber and Lizzie Fletcher introduced the Bipartisan Disaster Recovery Funding Act in May with support from 13 other co-sponsors from Texas, mostly from the Houston area, as well as supporters from other communities waiting on the funding, including Louisiana, South Carolina, Florida, and Puerto Rico.The Act directs federal agencies to release the $16 billion in disaster funds Congress approved in early 2018 following Hurricane Harvey to different states and territories—including more than $4 billion to Texas—within 60 days.“After Harvey hit, I fought alongside the Texas delegation to secure additional funds for Harvey survivors,” said U.S. Rep. Mike McCaul. “Unfortunately, the agencies tasked with distributing these funds did not respond with the same urgency.”According to the Texas Tribune, Texas has already received billions of dollars for Harvey recovery, but each bucket of money is designated for a specific purpose. The $4.3 billion that Congress approved for Texas last February is part of a HUD grant program designed “to help cities, counties, and States recover from Presidentially declared disasters, especially in low-income areas.”The Five Star Conference will host its Disaster Preparedness Symposium on July 31 in New Orleans, Louisiana. Natural disasters impact investors, service providers, mortgage servicers, government agencies, legal professionals, lenders, property preservation companies, and—most importantly—homeowners. The 2019 Five Star Disaster Preparedness Symposium will include critical conversations on response, reaction and assistance, to ensure the industry is ready to lend the proper support the next time a natural disaster strikes. Congress Disaster Relief House of Representatives 2019-06-04 Seth Welbornlast_img read more