In a recent Housingwire.com article (here) by Kathleen Howley, we learn that the current average 30-year mortgage interest rate of 3.24% is within one basis point of its all-time low of 3.23%. According to article:
Fannie Mae projected last week the average this quarter would be 3.2%, followed by 3.1% in the third quarter and 3% in the fourth quarter.
Fannie Mae is forecasting an average of 2.9% for every quarter of 2021.
Continue reading “Interest Rates Dropping – Again!”
According to a recent Wall Street Journal blog, here, the President of the Federal Reserve Bank of San Francisco, John Williams, says it will be another year before the Fed begins raising interest rates. If the definition of “news” is “something new” this observation is not “news.” Nevertheless, the article is newsworthy in one sense – it confirms pretty much what mainstream economists and the Fed have been saying for some time. To that extent, its consistency is newsworthy. Here is a thumbnail of what appears to be the general economic consensus regarding interest rates today: Continue reading “Interest Rates, ‘Reverse Repos,’ and Liquidity Risk – What Happens When The Fed’s Bond Buying Ends?”