Mortgage News 1/28/2022
The key event this week was the Fed meeting on Wednesday 1/26/2022, and it caused investors to anticipate a faster pace of monetary policy tightening, which was negative for mortgage rates. The major inflation and economic growth data had little impact. As a result, rates climbed a bit to the highest levels since early 2020.
As expected, the meeting statement indicated that the Fed soon will be ready to start increasing the federal funds rate for the first time since 2018 to help bring down inflation. In addition, Chair Powell said that their massive balance sheet of mortgage-backed securities (MBS) and Treasuries purchased to aid the economy early in the pandemic is now larger than needed and should be scaled back. While no specific time frame was provided for these policy changes, investors currently anticipate that the first rate hike will occur at the next meeting in March and that balance sheet reduction will begin this summer. Powell also would not provide a target for the total number of rate hikes, but he said that "there's quite a bit of room to raise interest rates without threatening the labor market."
Looking ahead, investors will closely follow news on the omicron variant and will look for additional Fed guidance on the pace of future rate hikes and balance sheet reduction.
If you?ve been thinking about a home purchase or refinance, now is the time before rates rise higher.
You can get a rate quote within minutes with just a few simple steps to start.
Apply online:http://visionquestlending.com/free_quote/
BBB A+
Tony Nguyen | NMLS#93776
Vision Quest Lending | 2860 Michelle Drive, Suite 140, Irvine, CA 92606
Direct 714-464-8042 | 877-318-0992 x6502 | Fax 866-394-9352
Email | tony@vqlending.com
Website | www.visionquestlending.com
The key event this week was the Fed meeting on Wednesday 1/26/2022, and it caused investors to anticipate a faster pace of monetary policy tightening, which was negative for mortgage rates. The major inflation and economic growth data had little impact. As a result, rates climbed a bit to the highest levels since early 2020.
As expected, the meeting statement indicated that the Fed soon will be ready to start increasing the federal funds rate for the first time since 2018 to help bring down inflation. In addition, Chair Powell said that their massive balance sheet of mortgage-backed securities (MBS) and Treasuries purchased to aid the economy early in the pandemic is now larger than needed and should be scaled back. While no specific time frame was provided for these policy changes, investors currently anticipate that the first rate hike will occur at the next meeting in March and that balance sheet reduction will begin this summer. Powell also would not provide a target for the total number of rate hikes, but he said that "there's quite a bit of room to raise interest rates without threatening the labor market."
Looking ahead, investors will closely follow news on the omicron variant and will look for additional Fed guidance on the pace of future rate hikes and balance sheet reduction.
If you?ve been thinking about a home purchase or refinance, now is the time before rates rise higher.
You can get a rate quote within minutes with just a few simple steps to start.
Apply online:http://visionquestlending.com/free_quote/
BBB A+
Tony Nguyen | NMLS#93776
Vision Quest Lending | 2860 Michelle Drive, Suite 140, Irvine, CA 92606
Direct 714-464-8042 | 877-318-0992 x6502 | Fax 866-394-9352
Email | tony@vqlending.com
Website | www.visionquestlending.com