Thursday, January 18, 2018 / by Peter Clark
January 18, 2018 by jonkurahara
Are you a renter that has become tired of paying someone else’s mortgage and not building any equity? Or a homeowner who has a growing family and is in need of more space? Whatever the case, if you are in the market for a new home there is no time like the present. Let’s explore a few tips that will help you to prepare for the home buying experience.
Tip #1: Prepare For A Busy Spring Season
First, it should be pretty obvious that you aren’t the only house hunter on the market. Other local individuals and families alike will be searching for a new house to call their own. As you may know, the spring is generally when the local real estate market starts to heat up. So, if you are looking to buy, you may want to address your needs earlier in the spring rather than later. The sooner you can get the paperwork signed, the less of a chance you end up in a bidding war.
Tip #2: Mortgage Rates May Be Trending Up
While this ...
Thursday, September 28, 2017 / by Peter Clark
THE GREAT ROLL-OFF BEGINS
Federal Reserve officials wrapped up their latest meeting (which occurs every six weeks) and announced what most market watchers expected them to announce: The Fed will shrink its massive balance sheet. The balance sheet holds mostly Treasury securities and mortgage-backed securities (MBS) -- roughly $4.5 trillion of them.
The Fed’s new policy has widespread ramifications. The Fed’s balance sheet correlates positively with base money supply. The larger the balance sheet, the more money the Fed has injected into the economy.
Here’s how it works: Primary dealers (mostly investment banks) buy Treasury securities and MBS and then turn around and sell them to the Fed. The Fed pays with newly minted money. Fed demand for the securities and the influx of new money work to keep interest rates low.
Now the Fed is ready to reverse course.
After massively expanding its balance sheet (and the base money supply ...