2014 Purchase Market News » Fed expected to reduce spending after new data Apply Now

  • News 2014 Purchase Market News » Fed expected to reduce spending after new data

loan-mortgage-loans-low-rate-low-fee Loans Madison WI St Louis MO Denver CO Hannibal MO Online Loan Applications

Home » News » Purchase Markets  | 2014 - Fed expected to reduce spending | ‪(970) 585-4546 | Refinance  |   | Tools | | Contact 

Mortgage Loans CO - Estes Park, Denver | Mortgage Loan WI - Madison, Milwaukee | Mortgage Loans MO - Hannibal, O'Fallon

Apply Now              Buy a Home              Refinance





Fed expected to reduce spending after new data

Fed expected to reduce spending after new dataPurchase Markets  \  January 28, 2014 07:27 pm

While prices were up on a year-to-year basis, the price index declined 0.1 percent from October 2013 to November. During the previous nine months, home prices rose, marking November as the first month-over-month drop in a year. Out of the 20 cities recorded in the index, nine reported positive monthly returns.

Some cities fared better than others. According to the report, Dallas home prices were up 9.9 percent from 2012 levels. Chicago also saw a major improvement in 2013, up 11 percent from 2012 and reaching its highest rate of price appreciation since December 1988.

Housing market strengthens economy
Rising home prices have signaled good news for many homeowners who have watched their property values and home equity rise over the last year. The year-over-year gains may also indicate to Federal Reserve officials that the housing market is close to its pre-recession levels.

In December, following a two-day meeting, Fed officials announced they would soon begin to reduce stimulus spending that has helped keep mortgage rates near record lows since 2012.

"Home prices continue to rise despite last May's jump in mortgage interest rates," said David Blitzer, chairman of the index committee. "Mortgage applications for purchase were up in recent weeks confirming home builders' optimism shown by the NAHB survey. Combined with low inflation - 1.5 percent in 2013 - homeowners are enjoying real appreciation and rising equity values. While housing will make further contributions to the economy in 2014, the pace of price gains is likely to slow during the year." 

Officials at the central bank have previously stated they would not begin to taper spending until the economy proved to be strong enough to continue growing on its own. Artificially low mortgage rates have helped many Americans become homeowners once more, and many expect the taper to influence rates to rise in 2014.

Another factor in the Fed's decision to change its fiscal policy was the positive national employment report in November by the Department of Labor. The report revealed that 204,000 jobs were added to the economy during the month. However, the hiring momentum did not carry over into the final month of the year, when only 74,000 jobs were added. This weaker report has left many economists speculating as to whether to Fed will still reduce spending in January.

According to a recent study by CNBC, most economists think that the Fed will remain on its course  to limit spending by $10 billion, despite the latest economic reports. In its poll, 87 percent of respondents told CNBC they expect tapering to match $9.87 billion in January. Later on in the year, 72 percent of economists predict that spending will be reduced by an average of $10.67 billion after every meeting following the January decision.

fha-loan-purchase-a-new-home-get-approved-home-buying-couples Missouri Wisconsin Illinois Missouri ColoradoMortgage Lending Real Estate Knowledge Base

Questions about buying or selling your existing home?  

Categories:  All | Choose a REALTOR | Working with a REALTOR | Buying | Selling Financial | Homeowners

 «  1 | 2 | 3 | 4 | 5   » 

Mortgage and Real Estate News Categories

Buyers |  | Market Conditions |  |  | Mortgages |  |  | Purchase |  |  | Realtor |  |  | Refinance

Home Financing Archive

August 2013 | September 2013 | October 2013 | November 2013 | December 2013 | January 2014 | February 2014 | July 2014 | August 2014 | September 2014 | October 2014 | November 2014 | December 2014 | January 2015 | February 2015 | March 2015 | April 3015 | May 2015 | June 2015 | July 2015 | August 2015 | September 2015 | October 2015 | November 2015 | December 2015  |  January 2016 | February 2016 | March 2016  

USDA-Loans-100-Refi-No-Downpayment

Real Estate Lending Options

Home Borrower Tools

How Much Can I Borrow? | Mortgage Calculator | Mortgage Rates | Forms

About Lendem Financial

Company | Senior Loan Originators 

Home Purchase Loans in Madison and Milwaukee WI  

Mortgage Loans Springfield, Hannibal, St. Louis, MO

Purchase Real Estate Loans Denver, Boulder, CO

Google Maps: Mortgage Loans Madison WI | O'Fallon MO | Denver CO

Facebook: Mortgage Wisconsin | Mortgage Missouri | Mortgage Colorado

Apply Now              Buy a Home              Refinance



  ‪(970) 585-4546



VA Home LoansFHA  and USDA Home Loans  in ColoradoIllinoisMissouri  and Wisconsin
TMortgage Loans Colorado Madison WI, Denver CO, St Louis MO | ‪(970) 585-4546 | Mortgage Calculator Options with Loan Quotes. Get Started Now With LF Loans Mortgage! Lock Your Rate - Calculate Payments - Compare Loans - Skip the Bank - Types: FHA Loans, HARP, VA Loans, ARM | Boulder, Ft Collins, Aspen, Pagosa Springs, Colorado Springs, Pueblo, Golden, Grand Junction, Steamboat Springs, Denver CO, Hannibal, Springfield, Troy, O'Fallon, St Louis MO, Chicago, Quincy IL | Home Loans in Armenia WI, Baraboo WI, Beaver Dam WI, Beloit WI, Brooklyn WI, Columbus WI, Deforest WI, Dell Prairie WI, Dodgeville WI, Edgerton WI, Fitchburg WI, Fort Atkinson WI, Germantown WI, Green Bay WI, Green Lake WI, Janesville WI, Lacrosse WI, La Valle WI, Lake Delton WI, Lake Mills WI, Lodi WI, Madison WI, Mauston WI, Mazomanie WI, Merrimac WI, Middleton WI, Milton WI, Milwaukee WI Monroe WI, Montello WI, Mount Horeb WI, Necedah WI, Oregon WI, Platteville WI, Portage WI, Prairie Du Chien WI, Princeton WI, Reedsburg WI, Ripon WI, Rome WI, Spring Green WI, Stoughton WI, Sun Prairie WI, Tomah WI, Verona WI, Watertown WI, Waunakee WI, Windsor WI

Questions about Lendem Financial mortgage loan options? Why you should think about using a mortgage broker vs a bank? Using a Mortgage Loan Officer that has access to all sources of lending institutiuons helps people get the best loan for their situation and offers all options on the market vs the programs at one bank. Call Todd Rubick of Lendem Financial and tell him why the bank said no... If your tax returns do not show your true income, or credit is less than perfect... Full service all source lending strategies will be offered for those that need them.