New Federal Reserve Chair Janet Yellen - Yellen takes over the Fed

Real Estate Technology with SRE Technologies NMLS: 1131869

New Federal Reserve Chair Janet Yellen - Yellen takes over the Fed



You're thinking of buying a home in 2014 and there are economic changes coming. How will this affect you? Ben Bernanke has finished his 8 year run as the Chair of the Federal Reserve. Janet Yellen is taking over as chair and has previously served as the Vice Chair. They have the same fundamental economic background but the Federal Reserve has big decisions ahead of them. The Federal Reserve has been buying bonds to keep interest rates low. Two months ago the Fed decided to start tapering their purchase of bonds. The Federal Reserve was buying $85 billion per month, on their Dec 18 meeting they started tapering by $10 billion. On January 29th, the Fed announced it would taper by another $10 billion per month to $65 billion. 

How this affects you buying a home in 2014 and beyond:  With the Fed reducing their purchases by $20 billion per month and expected tapering throughout 2014. Rates are expected to creep up before the summer buying rush. Bond demand is expected to drop and the yield will need to increase to attract buyers.

Don't waste time; if you're looking to buy meet with a lender and get approved before the rates sneak up on you!  

The most important thing you can do when deciding to purchase a home, is to secure a full lending commitment from us PRIOR to starting your search for a home.  Most sellers will not even consider an offer from a prospective buyer if their financing is not in order. An agent friend of mine this weekend posted she will not accept any offer from a buyer taking more than 21 days to close! Be prepared to buy or be prepared to keep looking at more houses. 

We will qualify you in advance, not just with a soft pre-approval on letterhead, but with an actual commitment to lend from our in-house underwriting department.  (Of course this is subject to verification of information provided, appraisal of the property, etc.)  Our lending commitment letter is better than a traditional pre-qualification letter, and is stronger than Desktop Underwriting (DU) approve eligible. Once we have an actual commitment WE can close on your new home in under 21 days!

To apply for your free loan prequalification, please go to my secure, encrypted portal at or call me at 760.420.5498 to get started. 



Posted by

Troy Huerta (San Diego)
Mortgage Loan Originator (NMLS 1131869)
Phone:  760.420.5498

Helping clients navigate the complex world of mortgage lending by offering quality innovative products, competitive rates, and a high level of customer service. 




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