Login  |  Create Account
Dec 13

A Simple Explanation Of The Federal Reserve Statement (December 13, 2011 Edition)

Tuesday, the Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent. The vote was nearly unanimous for the second straight month. Just one FOMC member dissented in the vote, favoring additional policy stimulus beyond what the Federal Reserve currently provides. In its press release, the Federal Reserve sais that the the U.S. economy is improving, noting that since its November 2011 meeting, the economy has been … [Read more...]

Sep 08

After A Pause, Mortgage Guidelines Resume Tightening

Mortgage guidelines appear to be tightening with the nation's largest banks. In its quarterly survey to senior loan officers nationwide, the Federal Reserve uncovered that a small, but growing, portion of its member banks is making mortgage approvals more scarce for "prime" borrowers. A prime borrower is described as one with a well-documented payment history, high credit scores, and a low monthly debt-to-income ratio. Of the 53 responding "big banks", 3 reported that mortgage … [Read more...]

May 03

Geopolitics Have Mortgage Rates Poised To Change

Among the most challenging aspects of shopping for a mortgage is how rates change constantly. It's hard to pin them down. For example, in 2011, mortgage rates have expired every 3-and-a-half hours, on average. That's fast. There's two main catalysts for changing mortgage rates. The first can be grouped asĀ "scheduled events"; the planned release of market data which includes the Existing Home Sales report, or a scheduled government statement such as when the Federal Open Market Committee … [Read more...]

Feb 03

Mortgage Guidelines Starting To Loosen?

Mortgage lending appears to be loosening. At least for now. In its quarterly survey of member banks, the Federal Reserve asks senior loan officers around the country whether their "prime" residential mortgage guidelines had tightened within the last 3 months. A prime borrower is one with a well-documented credit history, high credit scores, and a low debt-to-income ratio. Of the 54 responding banks, just 2 said its guidelines had tightened during the period October-December 2010. That's less … [Read more...]