Fed easing was already priced into mortgage rates, but there’s room for more relief if investors who fund most home loans get less skittish about prepayment risk and quantitative tightening. Continue reading
Central bank policymakers drop short-term rates by 1/2 percentage point and signal more cuts ahead, but much of the impact may already be priced in to mortgage rates. Continue reading
Investors who fund most mortgages have already priced in several rate cuts, so further declines could depend on what next week’s “dot plot” says about expectations for the pace of future cuts. Continue reading
A surprisingly large increase in core CPI, which excludes volatile food and energy prices, means Fed policymakers are likely to start out with a modest 25 basis-point rate cut when they meet next week. Continue reading
August payroll report includes “huge downward revisions” to previous estimates of June and July job growth, renewing recession worries and prospects for aggressive Fed rate cuts. Continue reading
Bond market investors who fund most mortgages are already certain the Fed will slash rates this month. The question has become how much will policymakers cut on Sept. 18, Nov. 7 and Dec. 18? Continue reading
PCE price index shows inflation continued to cool in July, but at a gentle enough pace that Fed policymakers are now seen as likely to only bring rates down by a hair in September. Continue reading
The Fed doesn’t have direct control over mortgage rates, but they’ve been coming down as investors are increasingly convinced that policymakers will be cutting rates at their three remaining meetings this year. Continue reading
Affordability challenges will limit growth in home sales to 0.5 percent this year — to just 4.78 million — before surging to 5.19 million in 2025, according to the latest housing forecast from Fannie Mae economists. Continue reading
The numbers suggest that the labor market cooled off much faster than was previously thought and is not in as strong a position as believed. The Federal Reserve now also has a case to make a bigger cut in interest rates than initially anticipated come … Continue reading