18 Dec 2014
By Mark Feder

FOMC Statement: No Year-End Surprises

Market Outlook
The Federal Open Market Committee (FOMC) said in its last statement for 2014 that although economic conditions have improved at a moderate pace, the Fed believes that the target federal funds rate of between 0.00 and 0.25 percent remains "appropriate." While labor markets show expanding job growth and lower unemployment rates, FOMC members noted that housing markets are recovering slowly. Inflation remains below the committee's target rate of two percent; this was attributed to lower fuel costs. Household income and business investment were seen as increasing, and the underutilization of workforce resources was described as "diminishing." These developments indicate better…
Read More
16 Dec 2014
By Mark Feder

Home Builder Index Stays Near Nine Year Peak

Housing Market
Home Builder Sentiment slipped to a reading of 57 in December according to the National Association of Home Builders Housing Market Index. November's reading of 58 prompted analysts to project a reading of 59 for December. The latest reading marks the sixth consecutive month for readings above 50. Any reading over 50 indicates that more builders are positive about housing market conditions than not. The one-point decline in December's reading kept the NAHB Housing Market Index within two points of a nine-year high reached in September. NAHB: Housing Market Index Suggests Slow Return to Normalcy NAHB's chief economist, David Crowe,…
Read More
15 Dec 2014
By Mark Feder

What’s Ahead For Mortgage Rates This Week – December 15, 2014

Market Outlook
Although there were few scheduled economic events related to mortgages and housing, last week brought an article about housing projections for 2015. Other news included increased job openings along with lower than expected jobless claims and higher mortgage rates. Job Openings, Retail Sales and Mortgage Rates Rise The U.S. Department of Commerce reported that November job increased to 4.80 million as compared to October's reading of 4.70 million job openings. Weekly jobless claims corresponded as new claims fell to 294,000 as compared to the prior week's reading of 297,000 new jobless claims. This was the lowest reading for new jobless…
Read More
08 Dec 2014
By Mark Feder

What’s Ahead For Mortgage Rates This Week – December 8, 2014

Market Outlook
Last week's economic reports related to housing and mortgages were few, but construction spending, the Fed's Beige Book report, non-farm payrolls and the national unemployment report indicated trends for the end of the year. Construction Spending Increases U.S. construction spending rose by 1.10 percent in October according to the Commerce Department. This reading translates to a seasonally-adjusted annual rate of $971 billion. Analysts had expected an increase of 0.70 percent based on September's original reading of -0.40 percent, but September's reading was revised to -0.10 percent on Tuesday. Private spending on residential projects increased 1.30 percent. Federal Reserve Beige Book…
Read More