All Posts Tagged: mortgage

U.S. Outlook: Interest rate normalization is ‘hurry up and wait’

Chief Economist

“Hurry up and wait” pretty well describes the state of monetary policy today as the Fed goes further down the path of interest-rate normalization.

Graph showing recent downward trend in consumer spending.With the March rate hike decision, the FOMC, in my opinion, took the opportunity to fire a shot across the bow against rapidly tightening labor markets, rising consumer inflation, and stock market gains that some analysts find excessive given the current economic environment.

For more on these developments, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on March 17.

Key observations:

  • Some analysts are starting to toy with the idea of a more aggressive Fed delivering four rate hikes this year, but we are sticking with our forecast of three.
  • Despite all the action in the labor market, prices, and sentiment measures, GDP growth in the first quarter is likely to be underwhelming.
  • Consumer spending appears to be slowing significantly in the first quarter.
  • If GDP growth and inflation re-accelerate over the summer as we expect, the Fed can comfortably move again in September.

Click here to read my full report.

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How it works: prequalification vs. preapproval

Mortgage Banking

In today’s competitive real estate market, getting prequalified or preapproved for a mortgage loan can provide the edge you need to get the home you want.

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What to know about down payment and asset reserve options

Mortgage Banking

Having a clear understanding about your funding sources for a mortgage, as well as being able to keep funds in reserve, may help speed the process in getting a loan.

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In the Market: A few starters for your planning process

Posted by Nneka Madus
Mortgage Market Analyst

Experts estimate that it can take almost a year just to get your finances in a good place before purchasing a home.

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Countdown to success: Managing your credit during the lending process

Mortgage Banking

Knowing what to do — and what not to do — before and during the mortgage application process can help you avoid bumps in the road.

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