Rates also took a breather after three weeks of consecutive increases
As broadly predicted, the Fed hiked the benchmark interest rate this week. But what does that mean for originators?
The latest FOMC meeting minutes show the bank is unlikely to raise rates until mid-2015, but the exact timing of the increase still depends on the health of the economy.
The White House has confirmed the Obama Administration is directing the FHA to reduce annual mortgage insurance premiums from 1.35% to 0.85%.
In a speech to be delivered tomorrow in suburban Phoenix, the President may announce a reduction of FHA mortgage premiums.
Historically, the mortgage industry experiences a slowdown during the holiday season, but this time around it was particularly quiet. Meanwhile, rates have hit a 19-month low.
Now is the time of year that mortgage professionals are flooded with predictions about what is going to happen in the housing market. Following the wrong advice could lead us to take poor risks or, conversely, not to take good ones.
The 10-year yield and MBS are experiencing low rates, but keep in mind to expect increased volatility at these low interest rate levels.