The Federal Open Market Committee voted to leave the Fed Funds Rate unchanged today within its target range of 0.000-0.250 percent.  The Fed also reiterated its plan to support the mortgage market to the tune of $1.5 trillion. In its press release, the FOMC noted that the economy may still be contracting, but that it's not happening with the same speed as in prior months.  Household spending is stabilizing and financial markets are "easing". Nevertheless, threats to the recovery are everywhere with the following items on the Fed's short list: The growing ranks of unemployed ...

The Federal Reserve adjourns from its two-day meeting this afternoon.  It's one of 8 scheduled meetings each year for the Federal Open Market Committee.Like all FOMC get-togethers, the purpose of the meeting is to discuss financial and economic conditions in the U.S., and to make new policy to stimulate or retard economic growth, when necessary. The Federal Reserve's main tool for reaching this goal is the Fed Funds Rate. When the Fed lowers the Fed Funds Rate, growth is stimulated.  When the Fed raises it, growth is slowed.  The Fed has other tools at its disposal, of course, ...

Monday, mortgage markets improved with news of new Swine Flu cases.  It's a classic example of Safe Haven buying and today's rate shoppers will see the benefits. Mortgage rates improved about 0.125 percent Monday. It's not an official term, but "Safe Haven buying" describes the trading patterns in which large numbers of investors move money away from risky investments and toward safer ones.  As a general rule in Safe Haven buying, stocks sell off and bonds make gains, including mortgage-backed bonds. Fears that a global Swine Flu outbreak would slow the global recovery is a ...

Last week, like the 3 weeks prior, mortgage markets were all over the place from day-to-day.  But, also like the 3 weeks prior, when the week ended Friday, rates were right back where they started from Monday. For the 4th straight week, mortgage rates started and ended the week essentially unchanged. Whether or not this is good news depends on your perspective.  For active home buyers who have yet to find the "right home", long-term flatness like this is terrific.  While interest rates stay even, buyer purchasing power holds flat and pre-approval letters stay ...

The days of rock-bottom housing prices may be reaching an end.According to the National Association of REALTORS, the number of Existing Home Sales fell by a modest 140,000 units last month. It's the fifth straight month in which home sales straddled the 4.5 million mark. The national housing inventory is down 900,000 from its July 2008 peak. These are two encouraging signs. Meanwhile, in a separate report, the Commerce Department said the supply of newly-built homes for sale is at a 7-year low.  This, too, is a positive signal for housing. Home values are based on supply and ...

WASHINGTON — The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year. Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately. “For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year ...

If falling home values is what prompted Fannie Mae and Freddie Mac to tighten mortgage guidelines in 2007 and 2008, America's mortgage applicants may get their long-awaiting loosening within the next 18 months. According to a government report, the values of homes financed with conforming mortgages rose for the third straight month in February. This is an important piece of data because as values rise on the homes against which conforming mortgages are made, Fannie Mae and Freddie Mac's respective loan portfolios get less risky. With less risk related to home values, there's an ...

National real estate data helps economists identify trends in the housing market. It shapes policy and influences markets.For active home buyers and home sellers, though, national real estate data is irrevelant.  This is because national data says nothing for the factors determining home prices in any given zip code. See, national real estate news is mash-up of data.  It's 128,203,000 homes from all 50 states.  Each of these states has its own economy and there are different factors that drive home values in each Most Americans understand this. But, if we dig deeper, we see ...