September 25th, 2015 1:31 PM by Jonathan White
Mortgage Market News for the week ending September 25,
President and CEO
Mortgage Broker | NMLS ID: 3443
Blue Door Mortgage, LLC
Newton, MA 02459
Clarifies Fed Policy
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.
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.
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
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.
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