From the category archives:

The Fed

What Yesterday’s Fed Announcement Means for Mortgage Rates

by Alex Stenback 01.26.2012

Yesterday, the Federal Reserve Open Market Committee (FOMC) wrapped a two day conclave in the usual manner – with a policy statement and rate decision. The policy statement, in addition to reciting the usual litany of economic yin and yang (economic growth moderate in US, slowing overseas.  Employment bad, household spending kind of OK, housing [...]

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Fed Day and Mortgages: No Policy, Rate Changes. More Help for Mortgage Rates a Possibility.

by Alex Stenback 11.02.2011
Thumbnail image for Fed Day and Mortgages: No Policy, Rate Changes. More Help for Mortgage Rates a Possibility.

Today, the Federal Reserve Open Market Committee wrapped a two day meeting with a policy statement, interest rate decision, and a press conference. As for policy and rates, the Fed maintained the status quo: “…the Committee decided today to continue its program to extend the average maturity of its holdings of securities [And] its existing [...]

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What Today’s (semi-surprising) Fed Statement Means for Mortgage Rates (Thanks Ben!)

by Alex Stenback 09.21.2011

Today the Fed punctuated it’s two day conclave in the usual manner – by releasing a policy statement. Though it was widely expected that the Fed would address the persistent economic weakness and add additional measures to bolster an obviously stalled-out economy, the exact nature and size of the initiative was a bit of an [...]

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The Federal Govt and The Housing Market: Where do we go from here?

by Alex Stenback 09.01.2011

Federal Reserve Governor Elizabeth Duke gave a lengthy speech today regarding the still-ailing housing market, and put forth a handful of solutions worthy of consideration. Anyone looking for clues as to future policy possibilities should read the entire statement (which is available at The Fed website.) But I read this sort of thing so you don’t [...]

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Fed Statement: Does a Promise That Rates Will Stay Low Until 2013 Apply to Mortgages?

by Alex Stenback 08.09.2011

“The Committee currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.” The money quote from Today’s Fed Statement – unusually suggesting a specific timeline before any interest rate hikes [...]

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The Fed and Mortgage Rates

by Alex Stenback 08.11.2010

“the Committee will keep constant the Federal Reserve’s holdings of securities at their current level by reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities. The Committee will continue to roll over the Federal Reserve’s holdings of Treasury securities as they mature.” That snippet of  inimitably impenetrable prose from yesterday’s [...]

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Fed Day, But Does it Matter?

by Alex Stenback 03.16.2010

The Federal Open Market Committee, otherwise known as The Fed, meets today and will make a rate decision and policy announcement this afternoon. What we know is that the Federal Funds Rate won’t change.  The Fed is on record that rates will remain low for an “extended period” and it’s not like they can move [...]

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Will Mortgage Rates Really Soar When the Fed Exits the Market?

by Alex Stenback 02.02.2010

Almost everybody (this writer included) expects mortgage rates to rise once the Fed concludes their $1.25 trillion mortgage shopping spree on March 31st. Estimates vary, but most expect rates to move up by .25% – .75%.  After all, the whole point of the program was to force rates lower, right?  So it only stands to [...]

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Fed: Mortgage Market to Remain on Life Support Through First Quarter of 2010

by Alex Stenback 09.24.2009

Graphic via Wall Street Journal From the Fed Statement yesterday: To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt. The Committee will gradually slow [...]

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