Items Tagged with 'Federal Reserve'

ARTICLES

  • Fannie Mae, Freddie Mac are building non-LIBOR adjustable-rate mortgages

    GSE officials pledge to roll out new product by 2021's LIBOR expiration
    Seven years after traders were caught boasting in emails and instant messages about cracking open bottles of champagne to celebrate their ability to manipulate the London Interbank Offer Rate, or LIBOR, the Federal Reserve issued a report with the framework for issuing new ARM mortgages based on a U.S. index. Now, Fannie Mae and Freddie Mac are preparing for non-LIBOR ARMs.
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  • Goldman Sachs all but guarantees the Federal Reserve is about to cut interest rates

    Analysts say there's a 90% chance of a rate cut
    Analysts from Goldman Sachs told clients this week that it’s basically a done deal that the Federal Reserve will cut its benchmark interest rate later this month. In the report, the Goldman Sachs analysts say that there’s a 90% chance of a rate cut coming out of the next meeting of the Federal Open Market Committee, which is set for July 30-31.
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  • Fed Chairman Powell tells Congress he would ignore Trump if fired

    “I fully intend to serve,” the nation’s top central banker said
    Federal Reserve Chairman Jerome Powell told Congress on Wednesday that he wouldn’t leave his post as the nation’s top central banker even if President Donald Trump fired him. Any whiff of instability at the top of the nation’s banking system could cause rates to rise as mortgage-bond investors seek additional compensation for perceived risk.
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  • Fed drops "patient" from outlook, signaling rate cut may come at next meeting

    Central bankers cite "uncertainties" clouding their outlook
    The Federal Reserve left its benchmark rate unchanged on Wednesday at the end of its two-day meeting in Washington, D.C., and dropped the word "patient" from its statement, signaling a rate cut may be coming as soon as next month. The Fed downgraded its assessment of economic activity to a "moderate" rate from "solid."
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  • Fannie Mae downgrades economic forecast citing "ratcheting up of trade tensions"

    Says 2020 will be the worst year since the Great Recession
    Fannie Mae downgraded its forecast for U.S. economic growth, citing a "ratcheting up of trade tensions," and said 2020 will see the worst economy in more than a decade. The mortgage giant revised its projection for GDP growth to 1.5% for next year, which would be the worst performance since a 2.5% contraction in 2009, according to data from the Bureau of Economic Analysis.
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  • Dueling polls on Fed's next move suggest the safe bet is a July rate cut

    Only 2 out of 46 economists in WSJ poll say the FOMC will act at next week's meeting
    Traders in futures markets are signaling a 22.5% probability of a Fed rate cut next week and an 86% chance of a cut at or before its July 30-31 meeting, according to CME Group. Economists polled by The Wall Street Journal gave a different picture: About 0.5% said they expect a move next week and 40% pegged it to the July gathering. That makes July the safe bet, with perhaps language added to the FOMC’s June statement aimed at reassuring markets.
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  • Almost 1 in 5 American households expect to move in next year, Fed report says

    Highest May reading in 2 years comes as more Americans are uncertain about their financial futures
    About 19% of American households surveyed in May expected to move in the next 12 months, according to the Survey of Consumer Expectations report from the Federal Reserve Bank of New York. Households also reported lower expectations of future income growth.
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  • Tumbling mortgage rates have made 6.8 million people "refi eligible"

    This week's 21-month low added almost 1 million borrowers to the pool
    When the average U.S. rate for a 30-year fixed mortgage dropped to a 21-month low this week, it pulled almost 1 million more mortgage holders into the pool of homeowners who are "refi eligible." There are now 6.8 million mortgage holders who would benefit from a refinancing, according to Black Knight.
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  • WSJ: Chance of a rate cut at next FOMC meeting is 25% as trade worries mount

    "Darker economic outlook" may force policymakers to take accommodative stance
    The chance the Federal Reserve will cut its benchmark rate in two weeks at its next meeting in Washington, D.C., is mounting as trade tensions threaten the economy. Traders in futures markets are putting about a 25% chance of a rate cut at the June 18-19 meeting and a 75% chance of a cut at the meeting after that, on July 30-31, according to data from CME Group.
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  • U.S. home values reach a record high of $26.1 trillion in Q1, Fed says

    Home equity rises to the highest level since 2002
    The value of all U.S. owner-occupied homes increased to a record $26.1 trillion in the first quarter, according to the Federal Reserve report released Thursday known as the Flow of Funds. Americans owned 60.4% of their homes in the first quarter, measuring the share of their home that was unmortgaged, the highest level of equity since 2002.
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