- Federal Reserve officials held off from raising Fed Funds rate and scaled back forecasts for future rate increases this year, citing the potential impact from weaker global growth and financial-market turmoil on the U.S. economy.The Federal Open Market Committee kept the target range for the benchmark federal funds rate at 0.25 percent to 0.5 percent. Implications are two quarter-point increases this year, down from four forecast in December.“The committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market indicators will continue to strengthen,” the FOMC said. “However, global economic and financial developments continue to pose risks.”
Weaker-than-expected global growth has clouded the U.S. outlook and led investors to expect a slower pace of tightening since the Fed raised rates in December for the first time in almost a decade. Yellen said in February that market turbulence had “significantly” tightened financial conditions by pushing down stock prices, causing the dollar to strengthen and boosting some borrowing costs.
- January 2016 – VA Loan Limits have been raised in several California Counties. Click on the VA LOAN LIMITS link at the top of the page for details.
- July 15th 2105 Currently our average VA mortgage application is closing at 3.75%
- June 23rd 2015 Currently our average VA mortgage application is closing at 3.375%
- Volatility in the bond market has increased as the uncertainty increases whether Greece will be able make a payment to satisfy Europe and the Euro. As uncertainty lies in Greece people are investing more in the US for safety of their investment allowing a slight improvement in todays VA interest rates.
- There was an increase purchase mortgage applications showing strength in the economy as well as an increase in personal consumption last week. Any signs of improvement in the economy gives the Fed more reason to think about raising rates next September.