Will Fed's New Leadership Impact the Housing Market?

One of the biggest questions in the weeks ahead is: What will the Fed do?

Remember that the Fed is now purchasing $35 billion in Treasuries and $30 billion in Mortgage Bonds (the type of Bonds on which home loan rates are based) to help stimulate the economy and housing market. This is down from the original $85 billion per month that the Fed had been purchasing. The minutes from the Fed's recent meeting of the Federal Open Market Committee revealed a lack of consensus on this topic. If economic data continues to be weak, the Fed may have to rethink the tapering it has begun.

In addition, the minutes also provided mixed signals about the Fed Funds Rate. Some Fed members indicated that they felt uncomfortable with the ongoing accommodating stance, which suggests they may be leaning towards higher rates sooner rather than later. However, other Fed members continued to believe that rates should remain low for the foreseeable future.

Finally, let's not forget that the Fed is undergoing a change in leadership. That said, new Federal Reserve Chair Janet Yellen pledged last month to continue her predecessor's policies by scaling back stimulus in "measured steps." She said she's "committed to achieving both parts of our dual mandate: helping the economy return to full employment and returning inflation to 2 percent while ensuring that it does not run persistently above or below that level."

The bottom line is that any news story involving the Fed may impact home loan rates in the coming weeks and months. I will continue to watch the latest economic reports, as well as statements made by Fed members.

I would love the opportunity to help you manage your Lake of the Ozarks Mortgage Loan or refinance.  Give me a call at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com with any questions you may have!!

For Lake area news, resources and tips on financial services, please 

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Michael Lasson

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

Job Creation for February is HIGHER than Expected!!

"Missed it by that much." Maxwell Smart. For the first time in several months, the number of job creations came in above expectations rather than missing the mark. Read on for details and what this means for home loan rates.

Despite the harsh winter weather, 175,000 jobs were created in February. This was above the 163,000 expected, and the largest gain in three months. In addition, there were revisions to the numbers for December and January, adding 25,000 more job creations than were previously reported.

The Unemployment Rate ticked up to 6.7 percent from 6.6 percent, while the Labor Force Participation Rate (LFPR) remained at 63.0 percent, a 35-year low. The LFPR measures the proportion of working-age Americans who have a job or are looking for one, and it should be moving higher in a recovery. Overall, this report was a positive sign for the labor market, but more and consistent improvement is still needed.

In other news to note, research firm CoreLogic reported that home prices, including distressed sales, rose by 12.02 percent in January 2014 compared to January 2013. January marks the twenty-third consecutive month of year-over-year price gains. And inflation remains a non-issue, as evidenced by the Personal Consumption Expenditures report, which was in line with expectations.

What does this mean for home loan rates? Remember that the Fed is now purchasing $35 billion in Treasuries and $30 billion in Mortgage Bonds (the type of Bonds on which home loan rates are based) to help stimulate the economy and housing market. This is down from the original $85 billion per month that the Fed had been purchasing. The Fed will be watching key economic reports closely in the weeks and months ahead. If economic data points are weak, the Fed may have to rethink the tapering it has begun. This will be a key story to monitor as we move ahead in 2014.

The bottom line is that now remains a great time to consider purchasing a Lake of the Ozarks Home or refinance, as home loan rates remain attractive compared to historical levels. Let me know if I can answer any questions at all for you or your clients.

I would love the opportunity to help you manage your Lake of the Ozarks Mortgage Loan or refinance.  Give me a call at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com with any questions you may have!!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

2013 New Home Sales Increased by 16%

"Cold as Ice." Foreigner. While many parts of the nation were dealing with icy conditions last week, the markets were heating up with a slew of economic reports and another taper announcement by the Fed. Read on for details.

There was a mix of good and bad housing news last week, as Pending Home Sales were down 8.7 percent in December from November. The report cited harsh weather for the decline. New Home Sales also fell by 7 percent from November to December, to an annual rate of 414,000. While the December number was below expectations, there was good news for 2013 overall, as builders sold an estimated 428,000 new homes—16 percent more than in 2012.

Research firm CoreLogic also reported that completed foreclosures declined 14 percent from December 2012 to December 2013. However, the Case Shiller 20-city Home Price Index fell by 0.1 percent from October to November, the first decline since October to November of 2012. Overall, the housing market continues to improve.

Also of note, December Durable Goods Orders (orders for items that last for an extended period of time) fell by 4.3 percent, the biggest decline since July. Meanwhile, Gross Domestic Product (GDP) in the fourth quarter of 2013 rose by 3.2 percent. This was above expectations, but below the 4.1 percent recorded in the third quarter of last year. The gains were led by a burst of consumer spending and an uptick in business investments. This is significant, as GDP is the broadest measure of economic activity. And inflation continues to remain tame, according to the Personal Consumption Expenditures Index.

What does this mean for home loan rates? Despite some weak economic reports, the Fed decided to taper its Bond purchase program by an additional $10 billion, noting that economic activity has picked up and the labor market continues to improve. Beginning in February, the Fed will now be purchasing $35 billion in Treasuries and $30 billion in Mortgage Bonds (the type of Bonds on which home loan rates are based). These purchases have been designed to stimulate the economy and housing market, and the figure is now down from the $85 billion in Bonds and Treasuries the Fed had been purchasing last year.

The timing of further tapering by the Fed will impact Stocks, Bonds and home loan rates throughout the year. It is a key story to monitor as we move further ahead in 2014.

The bottom line is that now remains a great time to consider a home purchase or refinance, as home loan rates remain attractive compared to historical levels. Let me know if I can answer any questions at all for you or your clients.

I would love the opportunity to help you manage your Lake of the Ozarks Mortgage Loan or refinance.  Give me a call at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com with any questions you may have!!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender
NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

How is the Bond Purchasing Program Effecting the Housing Market?

Time will tell. As 2014 marches along, time will tell us what impact the Fed's tapering of its Bond purchase program will have on home loan rates.

Remember that the Fed had been purchasing $85 billion in Bonds and Treasuries each month to stimulate the economy and housing market. Starting this month, the Fed will now purchase $40 billion in Treasuries and $35 billion in Mortgage Bonds (the type of Bonds on which home loan rates are based). The decision to further taper these purchases will be dependent on economic data.

Speaking of economic data, Consumer Confidence rose to 78.1 in December, rebounding from the lows hit in October and early November due to the government shutdown. In housing news, the S&P/Case Shiller Home Price 20-City Index rose by 13.6 percent year-over-year in October. This was just below expectations, but up from the 13.2 percent annual gain recorded in September. Pending Home Sales for November ticked up slightly, while New Home Sales fell slightly to an annual rate of 464,000 units. However, the number of New Home Sales for October was revised up to 474,000, which was the highest level since July 2008. Overall, the housing market continues to improve.

What does this mean for home loan rates? The Fed will be closely monitoring economic reports in the coming weeks and months as it decides when to further taper its Bond purchases. The timing of further tapering could have a big impact on Mortgage Bonds and home loan rates this year. This is a key story to watch in 2014.

The bottom line is that now remains a great time to consider purchasing a Lake of the Ozarks home or refinancing your home loan, as home loan rates remain attractive compared to historical levels. Let me know if I can answer any questions at all for you or your clients. 

Wishing you a very happy New Year!

I would love the opportunity to help you manage your Lake of the Ozarks Mortgage Loan or refinance.  Give me a call at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com with any questions you may have!!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

NMLS #: 493712

Unemployment Rate Falls to a 5-year Low of 7 Percent

"Tomorrow is often the busiest day of the week." Spanish Proverb. And it sure seemed that way with last week's busy economic calendar, as Friday's Jobs Report capped off a week filled with data. Here are the highlights. 

The highly anticipated November Jobs Report revealed that employers created 203,000 jobs last month, above the 188,000 expected. The Unemployment Rate fell to a 5-year low of 7 percent while the Labor Force Participation Rate (LFPR) managed to tick up to 63.0 percent, though it is still at lows not seen since the late 1970s. The LFPR is a measure of how many people are looking for work. All in all this was a good report, but the labor market is not out of the woods yet. 

Also of significance, the second reading of third quarter Gross Domestic Product (GDP) rose by 3.6 percent, above expectations and the best level in a year and a half. But a closer look shows the gains coming from a large buildup in inventories. This is important to note because a buildup in inventories could cause goods to stay on the shelf and not materialize into sales, which could set the stage for a disappointing read in the fourth quarter. 

In housing news, research firm CoreLogic reported that home prices, including distressed sales, rose by 12.5 percent in October 2013 compared to October 2012. This marks the twentieth month of year-over-year home price gains. In addition, New Home Sales for September fell but October's New Home Sales surged 26 percent, coming in above expectations. Both reports were delayed due to the government shutdown. 

What does this mean for home loan rates? Remember that the Fed has been purchasing $85 billion in Bonds and Treasuries each month to stimulate the economy and housing market. The Fed has said that its decision regarding when to taper these purchases will be dependent on economic data. Whether data has been strong enough for the Fed to begin tapering these purchases after its meeting of the Federal Open Market Committee on December 17-18 remains to be seen. Either way, the timing of the Fed's decision will definitely impact home loan rates heading into 2014 and it's why economic data in the coming weeks will be important to monitor. 

The bottom line is that now remains a great time to consider a home purchase or refinance as home loan rates remain attractive compared to historical levels. Let me know if I can answer any questions at all for you or your clients. 

I would love the opportunity to help you manage your Lake of the Ozarks Mortgage Loan or refinance.  Give me a call at (573) 746-7211 or send me an email at mlasson@fsbfinancial.com with any questions you may have!!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

NMLS #: 493712