Mortgage News

Federal Reserve raises rates for the first time since June, 2006.

Yesterday, for the first time since 2006, the Federal Reserve announced a slight hike in interest rates following a unanimous vote by the central bank’s Federal Open Market Committee (FOMC). Rates doubled from 0.25% to 0.50%. In a statement issued by the Fed, the FOMC explained why it felt that the time for a rate hike was now, “Given the economic outlook, and recognizing the time it takes for policy actions to affect future economic outcomes…”

 

Title Agents expect big property price increases in 2016, specifically in New Hampshire

First American Financial Corporation released their fourth-quarter Real Estate Sentiment Index this week, and according to a survey of over 3,000 title agents, home prices are still expected to rise significantly throughout 2016. The title agents are estimating an average price increase of 5.7% across the nation. However, the expected increase is slightly less than what the agents came up with on the third-quarter survey (6.7%).

Home Sales in the Northeast are rising fast.

The U.S. Census Bureau and the U.S. Department of Housing & Urban Development (HUD) published their latest monthly data and the results are significant. Home sales -in the Northeastern United States specifically- are soaring at a rate not seen in over five years. In this region, sales jumped by an unprecenented 135% for the month of October. Along with slight boosts in the Midwest and South as well, the country as a whole saw sales jump 10.7% from September, and up 4.9% from this time last year.

Chris Christie, speaking in NH, promises to make affordable housing a priority.

Speaking at the New Hampshire Housing Summit at Saint Anselm College in Manchester last week, New Jersey Governor and presidential candidate Chris Christie singled out affordable housing as prominent issue, specifically in NH, and something many polticians ignore. Christie noted that housing affordability is rarely discussed along with health and education, despite the connections between the three. "We don't make the correleation because it's one of the really ugly undersides of the American economy," Christie said.

Fed's Open Market Committe set to meet, rates to rise?

The Federal Reserve’s Open Market Committee is set to meet later this week in Washington D.C., and many economists expect them to raise interest rates in order to limit inflation and possibly prevent the expansion of an asset bubble; which are often to major causes of recessions. It’s a tightrope to walk, however, as raising the cost of borrowing money too late or too soon can have serious ramifications on the overall economy, as we saw in 2008.

Chinese stocks plummet, investors look to U.S. real estate.

The Chinese stock market, an extremely volatile entity that has shaken the confidence of many investors, has crashed over 40% since June. While on the surface the trillions and trillions of dollars lost over this timeframe wouldn’t seem to have any impact on American investors and home buyers, that’s not entirely true. Investors in China have begun to look at foreign real estate as a safer way to invest their money. Over the last 12 months, Chinese investors have sunk $29 billion into U.S.

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