With pandemic numbers rising again from some sources; it’s shaken investors and pushed 30-year mortgage rates lower again this week, though adjustable rates moved a little higher.MCLEAN, Va.
Fed to Keep Rates Near Zero ☘ Hoey Team ☘ eXp Realty
Dated: July 31 2020
The Federal Reserve voted Wednesday to keep its benchmark interest rate near zero. This will keep the cost of loans down until the economy starts to recover from the COVID-19 pandemic. The Fed also announced Wednesday it would be extending its lending and credit initiatives until the end of the year to help make it easier for Americans to get a loan.
The Fed’s key benchmark rate is not directly tied to mortgage rates, but it often indirectly influences them.
The federal funds rate is what banks charge one another for short-term borrowing. That does not reflect the exact rate that consumers pay.
Interest rates are currently low, but “the challenge is that lending standards have gotten much stricter,” Tendayi Kapfidze, chief economist at LendingTree, told CNBC. “Banks are tightening standards pretty aggressively because they are concerned that the damage to the economy is going to be long lasting.”
Greg McBride, Bankrate’s chief financial analyst, says consumers with a credit score of 700 or above are likely to get the best rates. For lower credit scores, “the availability of credit starts to dry up,” he says.
The Federal Reserve is closely monitoring the economic impact of the pandemic.
“The coronavirus outbreak is causing tremendous human and economic hardship,” the Fed said in a statement. “The path of the economy will depend significantly on the course of the virus.”
The U.S. recovery is “extraordinarily uncertain,” Fed Chairman Jerome Powell said in a video press conference on Wednesday. The Fed is “not even thinking about raising rates,” Powell said. “We’re stepping in to provide credit at a time when the market has stopped functioning.”
The Fed has vowed to use “its full range of tools to support the economy in this challenging time.”
In mid-March, the Fed started buying Treasuries and mortgage-backed securities. MBS yields track Treasuries, so both types of purchases are putting downward pressure on mortgage rates, HousingWire reports. Mortgage rates have reached all-time lows in recent weeks. The 30-year fixed-rate mortgage dipped below a 3% average in mid-July.
The Fed reportedly may also adjust its purchases of Treasury bonds and mortgage-backed securities that could nudge already low long-term rates even lower.
The central bank expects to keep its federal funds rate near zero “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals,” its statement read.
Here in Southwest Florida, inventory is low, but we continue to list and sell real estate. At our Team ☘ and Brokerage, we have been succesfully working 100% virtually / remotely for the past number of years as we grew, so we have been used to this new requirement.
Article content from our NAR (National Association of Realtors) Newsletter and from other sources including Hoey Team ☘ eXp
On this page we are adding a list of Vendors for COVID-19 related items here in SWFL. Please let us know if there is a Vendor / Store we should add: www.VisitCollier.Com Feel free to share with anyone looking.
NOTE for Buyers and Sellers: On our Hoey Team ☘ VIRTUAL OPEN HOUSE Page you may WATCH ? Detailed HD 3D Immersive VIDEO ? Walkthrough Tours for all our COMING to MLS & AVAILABLE LISTINGS right HERE: ? www.SWFLVRE.com ?
For more Real Estate related information as we go throught this COVID-19 experience, or if you have questions on any aspect of Buying, Selling, Upsizing, Downsizing, Moving within or Relocating to or from Florida (the number 1 state for people to move to), or on any aspect of the Real Estate Market, Locally, Nationally or Internationally, please let us know, we can help, we can address / answer your questions, and we are always available to help you or someone you know.
P.S. --> If You'd like for me to create a regular Video Tour for ANY of the Properties on our website, just CLICK "Video Request Button"; from property details. We can visit the property and record you a video, or, if you want, we can do a one on one Facebook Live Showing: https://HoeyTeam.239RealEstateDeals.Com
Hope Everyone Remains Safe; we are all in this together; and we trust that we will get through this Coronavirus COVID-19 pandemic more united, as one, with as little loss as possible.
Please let Kim or Barry know if we can do anything to help anyone in need here in Southwest Florida, weither it is for you or for a loved one, and we are able to help in a responsible social distncing way, we will certainly do what we can to help.
Also; please check out the other blogs, and tabs to many other Links, Updates, Reports & Stats that we have here on our informational website. ☘
We hope that you find the information useful. If you have any questions, please do not hesitate to contact Barry or Kim with the Hoey Team ☘ brokered by eXp Realty
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