vegassports-odds.com
vegassports-odds.com August 18, 2017


The Week Ahead: Will the Fed Follow Up on Rate Increases?

21 March 2017, 01:56 | Melvin Schneider

Image source Getty Images

Pile of gold bars

"Given continued solid job growth and recent income gains, we believe this pace of rate increase will not derail the ongoing housing recovery".

Elsewhere, market participants were also digesting comments by Chicago Fed president Charles Evans who told Fox News that the Fed was on track to raise rates twice this year and could be more or less aggressive depending on whether inflation picked up or not. To be clear, the Fed's dot plot is typically out-of-whack with the Fed's actual rate hike timetable, but changes at its margins are still considered material.

Federal Reserve Bank of Minneapolis President and CEO Neel Kashkari defended his status as the lone member of the central bank's Federal Open Market Committee (FOMC) to vote against an interest rate hike in a 13-page essay that challenged the Fed's policymaking process.

In a piece for HousingWire, he writes that the Fed's actions might actually be good for the housing market.

Rick Ross Rapper told Meek Mill not to trust Nicki Minaj
Since the two split earlier this year, Meek believes he's been the subject of scathing headlines about his personal matters. The most noteworthy lines are the ones that reference Lil Wayne, who has been in a very public feud with Birdman for years.

Ryan: AHCA needs to include 'even more assistance' for older Americans
Here is the central prize: "If we lower premiums, and hopefully lower them a lot, that is a victory for the American people". Trump met last week with members of the Republican Study Committee and assured two small changes would be made to the bill.

Dalai Lama opens Buddhist conference
Union Minister of State for Culture Tourism (Independent Charge) Dr Mahesh Sharma was also present at the inauguration. Buddhist monks and scholars from various countries participated in the seminar on Buddhism in the 21st century.

Also, he says, lending standards should loosen and mortgage rates will only moderately increase.

"We do not have a high-inflation threat right around the corner", Kashkari said during an interview on Bloomberg Television Monday, adding that the lack of price pressure affords the Fed patience in raising rates. "Yes, many existing homeowners will have a financial disincentive to sell because they would lose their lower than prevailing mortgage rates in doing so, the so-called rate lock-in effect". Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.8 basis points to 2.473 percent. Five-year fixed-rate mortgages are available at rates as low as 2.44% for high-ratio buyers, and at rates as low as 2.49% for low-ratio buyers.

The Bottom Line: The Fed raised its policy rate last week but the market's reaction was tempered by the its accompanying press statement, which confirmed that the Fed would remain cautious before initiating further rate increases. As such, the spike in our fixed mortgage rates that some had feared did not materialize, and that means its steady-as-she goes for both our fixed and variable mortgage rates.



Other News

Trending Now

Brexit process will officially start next week
Notification comes 279 days after the referendum of June 23 previous year delivered a 52 to 48 per cent majority in favour of withdrawal.

Spicer: Former campaign chairman had 'very limited role'
On Monday, FBI Director James Comey told the House Intelligence Committee that he has seen nothing to back up Trump. Those leaks, the administration says, are the real problem.

Doc Rivers: 'Not Cool' for Cavs to Rest Stars
As for the concerns of broadcast partners, they make a lot of their value back come the playoffs, when guys are not rested . Smith scored 10 points apiece, as Cleveland shot 38.8 per cent and a season-worst 18.5 per cent from three-point range.

Portland man wins gold medal at Special Olympics in Austria
There will be a lot of interest in the 2017 Special Olympics World Winter Games in Austria from across Canada's smallest province. There is nothing like a pizza and cupcake party at the Garlic Knot when someone is about to live out one of their dreams.