Fed will keep rates at zero until inflation is on track to exceed 2% for some time and will keep buying Treasuries and MBS
Market Update – Week of September 14
According to the article appeared on Market Watch on Sept. 16, “The Federal Reserve on Wednesday said it doesn’t expect to raise rates until the end of 2023 at the earliest and it set out new economic conditions that must be met before it will raise them.”
Bankrate‘s economist says this means investors should “get used to the low rates because they are here to stay.” However, an economist at UBS, said the Fed guidance was “vague.” For detail, check here.
Mortgage lending volume in 2020 likely to break records
From Housewire, according to Fannie Mae, Origination volume will reach $3.9 trillion, boosted by $2.4 trillion in refis.
First-time homebuyer activity decreased in Q2, but there’s still plenty of buyers out there
According to Housewire, First-time homebuyer activity decreased mostly in part due to the economic effects of the pandemic, but it still remains the most active segment in the purchase space of the housing market.
During the second quarter, 539,000 single-family homes were purchased by first-time homebuyers, down 4.6% compared to last year, according to Genworth Mortgage Insurance. This represented 40% of single-family homes purchased during Q2, Genworth said.
Compared to the first quarter of this year, it is an 18% drop.
Many (first time home buyers) put down smaller down payment, it says.