Whats Ahead For Mortgage Rates This Week February 12th 2018

Dated: 02/12/2018

Views: 134

What’s Ahead For Mortgage Rates This Week – February 12th, 2018

Whats Ahead For Mortgage Rates This Week – February 12th 2018Jerome “Jay” Powell was sworn in as Chair of the Federal Reserve amidst wild fluctuations in U.S. stock markets. Analysts attributed sliding stock prices to fears over inflation.

Mr. Powell, who follows former Fed Chair Janet Yellen, introduced himself via a video clip on the Fed’s website. Weekly readings on mortgage rates and new jobless claims were also released.

New Fed Chair Promises Transparency in Video Introduction

In a video introduction posted on the Fed’s website, new Fed Chair Jay Powell promised that the Fed would explain “what we are doing and why we are doing it.” Mr. Powell did not address stock market volatility but said that monetary policy decisions would be made based on the Fed’s dual mandate of achieving maximum employment and price stability along with economic growth.

Mr. Powell took leadership of the Fed as the national unemployment rate dipped to 4.10 percent.

Mr. Powell is an attorney by profession and is the first Fed Chair not to hold a PhD in economics in more than 30 years.

Former Treasury Secretary Advises Against Raising Rates Too Fast

Former Obama administration Treasury Secretary Larry Summers cautioned against raising rates too fast: “If the Fed raises rates sufficiently to assure financial stability, there is a risk that the economy will slow too much.

When the Federal Reserve raises its target federal funds rate financial institutions, mortgage lenders and retail lenders usually follow suit.

Mortgage Rates Rise, New Jobless Claims Fall

Freddie Mac reported higher mortgage rates last week. The average rate for a 30-year fixed rate mortgage was 10 basis points higher at 4.32 percent; the average rate for a 15-year fixed rate mortgage rose by nine basis points to 3.77 percent.

The average rate for a 5/1 adjustable rate mortgage gained four basis points to 3.57 percent. Discount points averaged 0.60 percent, 0.50 percent and 0.40 percent respectively.

New jobless claims fell to their lowest level since the 1970s. 221,000 first-time claims were filed as compared to 232.000 new claims expected and the prior week’s reading of 230,000 new claims filed.

Whats Ahead

This week’s economic news releases include readings on inflation, retail sales and the National Association of Home Builders Housing Market Indices. Readings on housing starts and building permits issued will also be released, along with weekly readings on mortgage rates and new unemployment claims.

For More Info Visit: http://www.bondstreetloans.com

Latest Blog Posts

Pros And Cons Of Downsizing After Retirement

Pros and Cons of Downsizing After Retirement With Baby Boomers already rolling into retirement and Gen X looking forward to shrugging off the stress of the 40-hour work week, downsizing could be a

Read More

Whats Ahead For Mortgage Rates This Week August 13th 2018

Last week’s economic reports included readings on job openings and inflation along with weekly readings on mortgage rates and new jobless claims. Job Openings Hit Third Highest Reading on

Read More

Big Second Quarter GDP Numbers Impact Housing Market

Positive economic growth numbers are always cause for celebration and the second quarter GDP just went vertical. After nearly four years of sub-par growth, the real GDP hit 4.1 percent in the second

Read More

Home Trends Includes Natural Mindfulness Designs

Urban and suburban life offers wonderful conveniences and cultural benefits. But a downside that many families are experiencing is the pervasive use of electronics and disconnectedness from nature.

Read More