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Tag Archives: Federal Reserve

Household Net Worth Falls in Q2: Fed Report

Despite a $355 billion increase in the value of household real estate, household net worth fell $322 billion in the second quarter, the Federal Reserve reported Thursday in its quarterly Flow of Funds report. And, while the value of owner-occupied household real estate increased in the second quarter, total residential mortgage debt fell almost $51 billion. As a result, owners' equity increased just over $406 billion and owners' equity as percentage of the value of the real estate rose to 43.1 percent, the highest level since Q2 2008, according to the report.

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Fixed Mortgage Rates Find New Lows in Wake of QE3 Announcement

The Federal Reserve's announcement confirming a third round of quantitative easing sent long-term mortgage rates tumbling to all-new record lows this week. Freddie Mac's Primary Mortgage Market Survey showed a drop in both the 30-year and 15-year fixed. According to the survey, the 30-year fixed-rate mortgage (FRM) averaged 3.49 percent (0.6 point) for the week ending September 20, down from 3.55 percent the week before. The 15-year FRM also fell this week, averaging 2.77 percent (0.6 point). The previous survey showed an average of 2.85 percent.

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Wells Fargo: Fed Stimulus to Set Up Improved Market for 2013

The bank's Economics Group issued a special commentary in its Housing Data Wrap-Up for August 2012, examining the potential effects (or lack thereof) the Fed's new plan may have on housing and updating its forecast for the market. The Fed's influence should put downward pressure on long-term interest rates, but Wells Fargo says the benefits from such a move will be modest at best, citing already-low mortgage rates. The bigger issue at hand is the ""fiscal cliff,"" which has led to a slowdown in hiring and turned back gains in consumer confidence.

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Fed Adopts Familiar Stimulus Plan, Will Spend $40B Monthly on MBS

The Federal Open Market Committee announced Thursday a new plan to stimulate a moribund economy, continuing two earlier plans which at best stopped the economy from contracting. The FOMC said it would keep the federal funds rate near zero into mid-2015, six months longer than it had said previously. The FOMC voted 11-1 ""to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month.""

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Mortgage Rates Flat as Investors Await Stimulus News

Mortgage rates saw little change this week as investors await news from the Federal Open Markets Committee (FOMC) about a possible third round of quantitative easing. According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 3.55 percent (0.6 point) for the week ending September 13, no different from the week before and only slightly above its all-time low achieved earlier in the summer.

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Treasury Expects Return of $15.1B from AIG Stock Sale

After bailing out American International Group, Inc. (AIG) at a price tag of $182.3 billion, Treasury and the Federal Reserve are expecting to see their full investment back, plus a return. On Monday, Treasury estimated a return of $12.4 billion after selling about $18 billion in shares. On Tuesday, Treasury then announced it expects to see an additional $2.7 billion.

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August’s Unemployment Numbers Likely to Trigger Stimulus

A mere 96,000 jobs were added in August, and the unemployment rate fell only because of a drop in the labor force, the Bureau of Labor Statistics reported Friday. Based on August's numbers, economists are anticipating another round of quantitative easing. Here are responses from economists on the latest employment report.

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New York Fed Reports Mortgage Delinquency Rates Down in Q2

Low interest rates and better debt management brought mortgage delinquencies down in Q2, the Federal Reserve Bank of New York reported Wednesday. The New York Fed released its latest Quarterly Report on Household Debt and Credit, revealing that the delinquency rate for mortgages declined from the first quarter to 6.3 percent. Meanwhile, an estimated 256,000 consumers had a foreclosure notation added to their credit reports, the lowest number since mid-2007.

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Mortgage Rates Slip as Investors Wonder About Stimulus

After a month of weekly increases, mortgage rates followed Treasury bond yields down this week. Freddie Mac reported that the 30-year fixed averaged 3.59 percent (0.6 point) for the week ending August 30, down from 3.66 percent in the previous week's survey. Bankrate's survey showed that the 30-year fixed average took a substantial tumble, falling to 3.80 percent from 3.91 percent before.

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Economy Expanding ‘Gradually’, Real Estate Markets ‘Improving’: Fed

The nation's economy expanded gradually from early July through mid-August, the Federal Reserve reported Wednesday in its periodic Beige Book. The description of the economy, drawn from reports from each of the 12 Federal Reserve Districts, differed from the usual tone of Beige Books, which have recently described economic growth as ""modest"" or ""moderate."" Housing markets across most districts, the Beige Book said, showed ""signs of improvement, with sales and construction continuing to increase.""

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