Matthew Speakman on what’s driving homebuyer demand

Zillow Economist Speakman explains what Zillow’s recent report on homebuyer demand tell us about the current state of the housing market.

Record low mortgage rates hold steady at 2.72%

This is the second week in a row rates have sat at the lowest recorded level in the survey’s near 50-year history.

What Yellen as Treasury Secretary would mean for housing

Experts weigh in on former Fed Chair’s possible impact on GSE reform and how she could jumpstart the economy.

Building the one-touch digital mortgage

As Katherine Campbell drives toward a one-touch mortgage, she’s taking time to share what she has learned along the way.

Politics & Money

Fed pledges to maintain current pace of MBS purchases

“We’re not even thinking about thinking about raising rates,” Powell tells reporters

The Federal Reserve pledged on Wednesday to keep buying Treasuries and mortgage-backed securities to the tune of about $120 billion a month.

There had been concern among economists about the Fed’s announcement at the end of April that it was slowing the pace of purchases after concluding that its bond-market rescue worked. The Fed’s presence in the bond markets, an emergency measure to support the economy during the COVID-19 pandemic, keeps credit flowing and puts downward pressure on mortgage rates.

“To support the flow of credit to households and businesses, over coming months the Federal Reserve will increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace to sustain smooth market functioning,” the Fed’s rate-setting Federal Open Market Committee said in a statement.

Currently, the Federal Reserve Bank of New York, which executes market orders for the central bank, is buying about $80 billion in Treasuries and about $40 billion of mortgage-backed securities a month, it said in a separate release.

The central bank also projected interest rates will remain near zero through 2022 to support the U.S. economy while it struggles through a recession brought on by the COVID-19 pandemic.

“We’re not even thinking about thinking about raising rates,” Fed Chairman Jerome Powell told reporters during a press conference after the meeting.

The Fed’s balance sheet has exceeded $7 trillion because of emergency programs aimed at supporting the economy.

“The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term,” the FOMC said in its statement. “The Committee will closely monitor developments and is prepared to adjust its plans as appropriate.”

Leave a comment

Most Popular Articles

Fannie Mae, Freddie Mac conforming loan limits increase for 2021

The Federal Housing Finance Agency announced new conforming loan limits for Fannie Mae and Freddie Mac for 2021. The increase is up 7.5% from 2020’s limit of $510,400 and marks the fifth consecutive year of increases.

Nov 24, 2020 By

Latest Articles

Compass eyes IPO in 2021: report

Venture-backed residential brokerage Compass has hired bookrunners ahead of an independent public offering in 2021, according to a new report.

Nov 25, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please