The Federal Reserve went dovish today with their announcement after the FOMC March meeting, conveying employment and economic conditions are historically solid, but slowing.
The highlights:
No Fed Funds rate increases through 2019-2020. We’ll see, as they were predicting 3 or 4 increases during 2019 last September.
The treasury rates are dropping mid-day. I’m receiving mid-day mortgage rate decreases from my wholesale mortgage sources. Rates are at it’s lows for the past year.
Fed is predicting slower domestic economic conditions because of global issues in Europe and China, decreasing from 2.5% to 2.1%. Inflation is staying moderate around 2%.
The balance sheet runoff created by the accumulation of treasuries, and mortgage backed securities during Quantitative Easing will stay gradual, will probably slow in May and stop September.
Of course the Fed conveys they’ll adjust their position as economic conditions change. Bottom line, they’re presently in a theoretical sweet spot allowing them to stay neutral, with good (but slowing) domestic economic conditions, but other global weakness keeping our rates down.
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me.
Ron Henderson GRI, RECS, CIAS
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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