Holding the line on interest rates can be good for originators overall, but might have some negative impact in markets with tight inventory
The Fed will likely hold the line on short-term interest rates at its meeting next week
Since the president’s action to lower FHA premiums, economists have tried to estimate the number of existing borrowers that could benefit from the reduction, and the Urban Institute is no different.
After hitting a 20-month low, mortgage rates broke out this week after an extended period of calm.
Approximately one-third of borrowers are not sure of their interest rate and many could still save hundreds a month through refinancing.
With the prospect of rising interest rates likely to dominate market interest this year, the most pertinent questions regarding U.S. housing will be, 'How fast and how high?'
The unemployment rate continues to decline, but wage gains are lagging behind the pace of employment growth with the majority of jobs at the low end of the pay scale.
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.