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Markets in a Minute 1/16/2015

For the Week Ending January 16, 2015
Please enjoy this quick update on what’s happening this week in the housing and financial markets. Here at Envoy Mortgage in Brookfield, we appreciate you taking the time out of your day to read this quick report!

Fed commentary on the economy shows moderate growth and more consumer spending. If correct, policy rate increases could occur this spring.
December’s employment report supports Fed findings. Again, if strength continues, the Fed could raise the policy rate this spring.
In contrast, December’s retail sales (released after the Fed’s info was gathered) dropped unexpectedly. Negative economic news can help keep rate increases at bay.

FHA is lowering its Mortgage Insurance Premiums (MIPs) by 0.5%. The move is expected to save the average FHA borrower $900 per year. This takes effect for all case numbers assigned on/after January 26, 2015; current cases can be canceled and a new one issued on 1/26/2015. Envoy has a process in place for this to happen flawlessly.
Down payment requirements on some conventional loans are scheduled to drop from the current 5% to 3% for qualified buyers in 2015. Envoy Mortgage of Brookfield is already offering this program; contact me for more details.
As fuel costs fall, sellers are expected to start asking more for their homes. Conversely, oil-producing markets could see rising unemployment and price declines.

A banker fell overboard from a friend’s sailboat. Not knowing if the banker could swim, the friend grabbed a life preserver, held it up and shouted, “Can you float alone?” “Obviously,” the banker replied, “but this is a heck of a time to talk business!”

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.

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