My New Blog

Mortgage rates ended the week a bit higher and Chair Yellen expects a rate high by the end of the year

September 25th, 2015 1:31 PM by Jonathan White

 

Compliments of

Jonathan White

President and CEO
Mortgage Broker | NMLS ID: 3443

Blue Door Mortgage, LLC

NMLS: 2218

Call: 617.527.BLUE (2583)

jwhiteloan@bluedoormortgage.com
www.bluedoormortgage.com

1280 Centre Street

Newton, MA 02459

     

 

Yellen Clarifies Fed Policy

 

This week, mortgage rates gave back some of the improvement seen following last week's Fed meeting. The reversal was helped along by comments from Fed Chair Yellen. Recent economic data was mixed and had little impact. Mortgage rates ended the week a little higher. 

 

On Thursday night, Fed Chair Yellen gave her first speech since the Fed meeting on September 17. She clarified many of the issues which had created uncertainty for investors. She said that she expects that a federal funds rate hike will be appropriate before the end of the year. She also reassured investors that the U.S. economy is strong enough to handle a rate hike. She noted that the impact of global economic weakness on the U.S. was not likely to be significant enough to have much influence on future Fed policy. After her speech, global stock markets rallied and mortgage rates moved higher. 

 

The housing data released over the past week was encouraging. August new home sales increased 6% from July to the highest level in over seven years. New home sales were 22% higher than a year ago. While August existing home sales decreased a little from July, they remained near multi-year highs.

 

 

Looking ahead, the important monthly Employment report will be released on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Before that, the Core PCE price index, which is the Fed's preferred inflation indicator, and Pending Home Sales will come out on Monday. The ADP Employment Change will come out on Wednesday. The ISM national manufacturing index will be released on Thursday.

 

 

All material Copyright © Ress No. 1, LTD (DBA MBSQuoteline) and may not be reproduced without permission.

 

 

 

Posted in:Mortgage and tagged: Mortgage Rates
Posted by Jonathan White on September 25th, 2015 1:31 PM

Archives:

My Favorite Blogs:

Sites That Link to This Blog: