federal reserve Archive

Fed’s Change Means Higher, More Volatile Rates

Major changes are coming to housing finance. The Federal Reserve is about to unwind a program that has held mortgage rates low for several years. How will this change impact housing? Lenders weighed-in in NAR’s most recent Survey of...

FHA’s Reduces Fee to Pre-Crisis Level

In a move that signals greater normalization of the housing market, the FHA announced a reduction in its annual insurance premium of 25 basis points. This move would reduce the fee it charges from its 0.85 percent to 0.6...

New Tool in Consideration to Help Housing Market

The Federal Reserve is considering a new tool never before used that could help the housing market. The Fed will permit banks to borrow from the Fed at even lower interest rates, but on the condition that the borrowed...

The Federal Reserve Stress Test: Residential and Commercial Mortgages

The Federal Reserve has released the conclusions of its “Comprehensive Capital Analysis and Review” (CCAR), also known as the “stress test.”  The Fed tested whether the major banks have enough cash and liquidity to withstand catastrophic losses in a...