Fed Chief Paints Bleak Economic Outlook
- By:
- MortgageLoan.com | July 16, 2008
The US economy will continue to face "numerous difficulties" with no sign of easing over the next two years was the depressing message delivered to Senators by Federal Reserve Chairman, Ben Bernanke on Tuesday.
"The effects of the housing contraction and of the financial head winds on spending and economic activity have been compounded by rapid increases in the prices of energy and other commodities, which have sapped household purchasing power even as they have boosted inflation," Bernanke said.
He added, "Against this backdrop, economic activity has advanced at a sluggish pace during the first half of this year, while inflation has remained elevated."
Bernanke is due to appear before the House Services Committee on Wednesday, but also expressed concerns about rising inflation risks due to high commodity prices, hinting that the Fed might be reluctant to support economic growth because of the risk they would feed inflation pressures.
Bernanke's comments contrast sharply with President George W Bush who has tried to downplay the crisis saying, "Despite the challenges we face, out economy has demonstrated remarkable resilience...We will come through this challenge stronger than ever before."
In his address to the Senate, Bernanke did stress a greater need to tackle uncertainty within the housing market, which he believes is largely behind both the financial markets and economic stresses.
Government Take Over of Fannie, Freddie Imminent
- By:
- Bill Rice - MortgageLoan.com | September 06, 2008
Fannie, Freddie expected to be taken over by the government as early as this weekend to prevent pending failure of the two huge mortgage institutions.
Mortgage Application Woes, What to Do When Your Lender Says No
- By:
- Bill Rice - MortgageLoan.com | September 05, 2008
The mortgage market is in a monumental shakeup and that is leaving many borrowers with rejected stamped on their mortgage application. However, there are lots of options to improve your chances of getting approved from credit repair to government mortgage assistance programs. Learn a few simple techniques to get your next mortgage application approved.
GMAC Lays off 5000, Shutters 200 Retail Branches
- By:
- Bill Rice - MortgageLoan.com | September 04, 2008
GMAC became the latest in a long line of mortgage business downsizing and closings. GMAC announced on Wednesday that it will be laying off 5000 employees and closing over 200 of its retail mortgage branches throughout the US.
Fannie, Freddie May Dodge Bailout
- By:
- Bill Rice - MortgageLoan.com | September 03, 2008
On the heels of a reasonably priced Freddie Mac auction of $1 billion in 5-year notes Fannie Mae and Freddie Mac's stock continues to climb out. This re-issuance priced at a spread of 95.6 basis points more than the 5-year US Treasury notes--signaling a reasonable risk premium and capability to continue issuing debt.
Fed Hawks Softening Inflationary Rhetoric
- By:
- Bill Rice - MortgageLoan.com | September 02, 2008
As the next Federal Open Market Committee (FOMC) quickly approaches the anti-inflationary hawks are softening their rhetoric for a rate hike. Increasingly the call on September 16 looks to be one of staying the course as economic indicators continue to report in confusingly balanced, good and bad way. This certainly makes a case for the Fed to take their hands off the economic wheel again and let markets do as they may--to determine reality from hype.
Mortgage Market Giving Economists Fits, Should Mortgage Borrowers Care?
- By:
- Bill Rice - MortgageLoan.com | September 01, 2008
It seems we are in the perfect economic storm for mortgages. Many homeowners and potential home buyers are stuck in a confusing mix of market signals. A blend of good and bad that leave us with a balanced scorecard. This is leaving most experts offering little practical advise and instead focusing on predicting the bottom. Since, there is little market news on this Labor Day lets take the down time to step back and see what all these current mortgage trends might mean to you.
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