July 14th Market Update: Yelling about Yellen

Mortgage and Lending with Homes Mortgage NMLS# 366970

Good Morning,


I HAVE TO TYPE THIS IN ALL CAPITAL LETTERS TO MAKE IT SOUND LIKE I’M YELLING.  Now that I’m done with that, let’s reassure you that there is no reason to really yell, the word play is something I couldn’t resist.


Janet Yellen, The Federal Reserve Chair who took over for Ben Bernanke this year had a nice little chat with Congress on the state of the economy yesterday.   The core of the conversation is that the economy is moving in the right direction but still needs Federal Support.  Currently, Quantitative Easing, the main lynch pin of support is at $35 Billion per month, which is down from $85 Billon and  will continue to drop month by month with a tentative wrap up in October.  This is great news for everyone in favor of less government intervention with the economy.


So what will the Federal Reserve do with the over $4.5 Trillion in treasury bonds and Mortgage Backed Securities they now own?  Yellen states that they are working up an exit strategy.  Only time will tell how they will unload this supply and what the result will be to the markets. 


In the meantime, rates are still steady and low. 




Rates: 30 year fixed at 4.125% (APR 4.205) and the 15 year at 3.375% (APR 3.474), FHA: 3.75% (APR 5.835): As always rates change with individual credit scenarios and programs, APRs are estimated based off of a $250,000 purchase price with 20% down and a 740 credit score, if you want an exact quote, call. These are not quotes, merely a baseline measure to gauge how rates change from week to week.



Matt Royer
Mortgage Consultant, CMC
NMLS 366970

Homes Mortgage NMLS 298853

612-232-7646 cell I 651-770-0637 office




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Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Thank you Matt for the info on the FED.  I hope we get through this without bankrupting the US.

Jul 16, 2014 01:35 AM #1
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Matthew Royer

NMLS # 366970
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