Mortgage applications came in higher again last week, as more consumers took advantage of another pullback in mortgage rates, according to the Mortgage Bankers Association. The MBA’s Market Composite Index, a measure of weekly loan volume based on surveys of association members, increased 3% on a seasonally adjusted basis for the seven-day period ending March … [Read more…]
There was some debate as to whether or not the Federal Reserve would hike the Fed Funds Rate today, although the consensus was for a 0.25% increase. That’s exactly what the Fed delivered. Additionally, markets were (and still are) betting that the Fed cuts rates by roughly 0.75% by the end of the year, but the Fed’s just-released forecasts show zero rate cuts by the end of the year and slightly HIGHER rates by the end of 2024. Despite all this, Treasury yields (a benchmark for mortgage rates) and mortgage rates themselves fell significantly after the Fed news came out. Why in the world could that happen? First off, the Fed Funds Rate is not a mortgage rate, nor does it directly affect mortgage rates by the time the Fed actually hikes or cuts. More importantly, Fed Chair Powell spoke about upcoming tightening of lending conditions due to the recent banking drama. That may seem like a simple enough comment, but it carries a lot of weight in terms of shaping economic momentum. Lending and credit are critical to growth and inflation. If lending subsides (fewer loan programs or more restrictive requirements to qualify), it puts additional downward pressure on inflation. And inflation is the key reason rates have remained high. Long story short, in spite of the Fed rate hike and the relatively unchanged outlook for 2024, the market saw some indication of a policy pivot in Powell’s comments–some shifting of the big picture cycle of economic growth and inflation. Either that, or Powell’s warning on banks caused investors to fear additional banking issues in the days/weeks ahead.
Owning a home comes with far more than a monthly mortgage. See which costs homeowners need to consider.
The federal government spends about a third of its money on health programs and services. Here’s where the money goes.
Looking for some projects to clean up your outdoor space? From creating an outdoor oasis to washing your roof, here are 12 ways to refresh your outdoor space this spring.
The post From Drab to Fab: 12 Ways to Refresh Your Outdoor Space This Spring appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.
It hasnât been a good few weeks for banks whose names begin with âSiâ (Silvergate, Silicon Valley, and Signature, with Silicon Valley Bank declaring Chapter 11 bankruptcy this morning; todayâs Rundown discusses how the bank crisis may impact lenders). Ah, those clever secondary marketing folks. Cornerstoneâs Henry S. frets, âI canât believe itâs bank collapse season already. I just finished taking down my train derailment decorations.â Certainly, time flies by, and I hope youâre wearing some green today. Originally a religious holiday to honor St. Patrick, who introduced Christianity to Ireland in the 5th century, St. Patrickâs Day has evolved into a celebration of all things Irish, with the first parade on March 17, 1762, in New York City, featuring Irish soldiers who served in the English military. It certainly is more fun to think about celebrating the Irish than the constant stream of headlines as people race to conjecture about the health of world banking, and people crying âshoulda woulda coulda.â The markets seem to be performing a stress test on the Fed. The Federal Reserveâs (Fedâs) tightening seems to be finally having an effect, and an early victim has been smaller banks that did a poor job of managing interest rate and deposit concentration risk. (Todayâs podcast can be found here and this week is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology, and other services in the mortgage industry and in banking.)
Opinion: the Fed broke the banks. What’s next for mortgage? HousingWire
