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Fed Minutes Edge Mortgage Rates Higher

By
Mortgage and Lending with Northeast Bank NMLS ID 509649

FOMC September 2010 MinutesThe Federal Reserve released its September 21, 2010 meeting minutes Tuesday afternoon. Mortgage rates in Maine are slightly higher today.

It’s unwelcome news for this season’s home buyers, and existing homeowners with plans to grab lower rates. Mortgage rates made new lows last week and may have reached a turn-around point.

The “Fed Minutes” is published 8 times annually, and is the official meeting recap for the Federal Open Market Committee. Similar to the meeting minutes released after a corporate conference or condo association gathering, the Fed Minutes details the conversation and debate between meeting attendees.

Minutes are the lengthy companion to the Fed’s brief, post-meeting press release.

Because of its content, the Fed Minutes is closely read by Wall Street and economists. It’s insight into the talk that shapes our nation’s monetary policy and, within the text, there’s often clues about the Fed’s next move.

Here’s some of what the Fed discussed last month:

  • On inflation : It’s running at lower-than-optimal levels
  • On housing : Post-tax credit, housing stalled in July
  • On stimulus : The Fed may intervene in open markets within the next few months

 

The over-riding theme within the minutes was that the U.S. economy is growing a steady pace, albeit slower than what’s optimal. The Fed is prepared to push things along if the economy slows further and news like that is helping stock markets.

Bond markets are losing. Rates are rising.

For now, mortgage rates hover near all-time lows.  If you haven’t locked a mortgage rate yet, your window may be closing.  Once the economy turns around for certain, mortgage rates will be among the first of the casualties.

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Shannon Odom
Mortgage Loan Officer
Northeast Bank
277 State Street Suite 3B
Bangor, ME 04401
P: 207-217-6750
C: 207-561-0944
F: 888-600-5335
smodom@northeastbank.com

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Mike Morrison
Will & Will Real Estate Brokers, The Woodlands, Texas - Houston, TX

"The over-riding theme within the minutes was that the U.S. economy is growing a steady pace, albeit slower than what's optimal. The Fed is prepared to push things along if the economy slows further and news like that is helping stock markets."

"Bond markets are losing. Rates are rising."

I read the same BS as you did Shannon. Economy growing at a steady pace my ass, compared to what? They forgot to mention that THEIR monetary policy is destroying the USD at warp speed.

You bet the Bond Market is losing, just wait until all the MBS issues blow up. This is the biggest cluster F known to mankind.

We need to duck tape the Fed's mouth shut and let the adults take over. I can't wait for the next issue of "let's throw some more fiat money on the smoldering ruins of the economy"..I mean the FOMC Minutes.

Oct 13, 2010 04:21 AM