Tag Archive for ‘Federal Reserve’

Federal Reserve and Housing: No Taper Talk Yet

Today’s Federal Open Market Committee announcement did not provide an explicit reference to an expected tapering of purchases of Treasury ($80 billion a month) and mortgage-backed ($40 billion a month) securities. In addition, as part of its ongoing accommodative policy stance, the Fed held its benchmark target rate near zero percent. In Chairman Powell’s press conference remarks, he stated, “The… Read More ›

Real Estate Market Values Surge in the First Quarter

The latest results from the Federal Reserve’s Z.1 Financial Accounts of the United States, i.e., the “Flow of Funds”, show that, in the first quarter of 2021, the aggregate market value of all owner-occupied real estate in the United States registered the largest numerical quarterly increase in the last 20 years’ worth of data. From $32.84 trillion in the fourth… Read More ›

Economic Well-Being of U.S. Households

The Federal Reserve Board recently released its Report on the Economic Well-Being of U.S. Households. The report provided results from the responses to the 2019 Survey of Household Economics and Decisionmaking (SHED), as well as from responses to a follow-up survey conducted in April 2020. Surveyed items included income, employment, dealing with expenses, banking and credit, housing, education, and retirement…. Read More ›

Refinancing Activity Soars

The Mortgage Bankers Association’s Weekly Application Survey shows a weekly increase in the Market Composite Index by 15.1% on a seasonally adjusted basis. The Refinance Index soared 26.0% from the previous week and the Purchase index decreased 2.7%. Looking at the Refinance series since its inception, the latest 10-week sprint of over 160% is the largest since January 2009 when… Read More ›

Household Balance Sheets: 3Q19

The third quarter 2019 Financial Accounts of the United States, the Federal Reserve’s flow of funds data, show the aggregate values of households’ assets and liabilities in the nation. Households’ real estate assets totaled $29.2 trillion and liabilities totaled $10.5 trillion, making homeowners’ equity $18.7 trillion or 64% of total household real estate. The data show a continuation of the… Read More ›

Fed Lowers Target Rate for Third Time in 2019

The Federal Reserve reduced the target range for the key, short-term federal funds rate by 25 basis points to a top rate of 1.75% at the conclusion of its October Federal Open Market Committee (FOMC) meeting. This was the third cut in 2019, almost fully reversing a set of increases enacted in 2018. The FOMC views these enacted reductions as… Read More ›

Non-revolving Debt Fuels Consumer Credit in the Latest Quarter

The Federal Reserve’s latest G.19 Consumer Credit Report shows rising trends in consumer credit, excluding loans secured by real estate, through June 2019. As of June 30, 2019, consumer credit totaled $4.1 trillion on a seasonally adjusted basis, with $1.1 trillion in revolving debt1 and $3.0 trillion in nonrevolving debt2. This is an increase of $15 billion from the previous… Read More ›

Federal Reserve: Patience Continues

At the conclusion of its May meeting, the Federal Reserve held the key, short-term federal funds rate steady, with a top rate of 2.5%. The decision was unanimous and widely expected, with members of the Federal Open Market Committee agreeing that while economic growth conditions remain “solid,” inflation pressures remain anchored. In fact, the Fed’s preferred inflation gauge, the core… Read More ›

Fed Adopts A More Dovish Stance

The Federal Open Market Committee (FOMC), the Fed’s monetary policymaking body, held the federal funds rate steady at a top rate of 2.5% at the conclusion of its March meeting. This was no surprise for financial markets, as this approach had been telegraphed by the Fed in January. However, the Fed communicated two other elements that indicate that the central… Read More ›

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