monetary policy

Apps Up As Treasury Yields Pushed Rates Down

Posted on by TMN Editor
Mortgage applications soared again as treasury yields pushed rates to their lowest level in three weeks. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – jumped 10.4% on the heels of the week prior’s 9.9% bump. Adjusted purchase applications rose by 9%, while the unadjusted index increased by 28% and was 20% lower YOY. Refis also saw an increase of 11% and accounted for 37.5% of total applications. In the past decade, they averaged 58% of all activity. The rush comes as the 30-year fixed-rate fell to 6.75% from 6.81%. Americans seem to be taking advantage of cooling rates in the new year after little activity in the…

Opinion: The Fed Is Engaged In Monetary Policy Overkill

Posted on by TMN Editor
By DESMOND LACHMAN There is good news and bad news for the U.S. housing market. The good news is that by this time next year, mortgage rates will be substantially lower than they are today. The bad news is that by this time next year, the U.S. is more than likely to be in a meaningful economic recession. The main reason for believing that next year we will have both lower interest rates and a recession is that the Fed is currently engaged in monetary policy overkill and that monetary policy operates with long and variable lags. Those lags are thought to be between 12 and 18 months. That means the economy, which is already showing clear signs of slowing,…