Mortgage Minute – March 18th

This Week’s Mortgage News

This week, the Federal Reserve announced it would not raise its key interest rate as expected and lowered its estimate for the number of rate hikes in 2016. In December, The Fed’s Open Market Committee had said it would raise rates four times this year. Now, based on volatility in the stock market and falling oil prices at the beginning of the year, the Fed is expecting about two rate hikes.

Federal Reserve Chairwoman Janet Yellen was clear in saying that the “policy is not on a pre-set course” and any decisions would be made based on the changing economic environment. For example, any future rate increases will likely be “gradual” moves, and a reduction of the rate to zero could be possible if circumstances warrant.

The Fed decision Wednesday to scale back planned rate hikes this year was received favorably by investors, with the stock market crossing into positive territory for the first time in 2016 the day after the announcement.

Featured Product: Jumbo Loan 5% Down

Weichert Financial Services offers a jumbo loan option for borrowers with loan amounts above conventional conforming and below high-balance loan limits. This fixed-mortgage loan only requires a 5% down payment.

Industry Trends

WFS Jumbo rate – 5/5 ARM: 3.125%
Other WFS rates – Check with your GSM for current rates.
Refi Index – (-6.0%)
Purchase Index – (+0.3%)
NAHB Builder Confidence – 58 (unchanged)
Existing Home Sales – 5,470,000
(+0.4%)
New Home Sales – 494,000 (-9.2%)
Pending Home Sales – 106.0 (-2.5%)
Housing Starts – 1,178,000 (+5.2%)
Building Permits – 1,167,000 (-3.1%)

(As of March 17, 2016)

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Jennifer Blanchard

Jennifer Blanchard is a Top Producing real estate agent in Basking Ridge with over 20 years of experience. She would love the opportunity to discuss any real estate questions you have.

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