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Mortgage rates remain relatively
MORTGAGE RATES REMAIN RELATIVELY STABLE DESPITE THE FED NEWS. HERE’S WHY.
Since the onset of the COVID-19 pandemic in the U.S, the housing market has been experiencing ups and downs, with the economy hit hard by massive joblessness and recession. At the same time, the housing market has had historically lowinterest rates; a move implemented to curb the impacts of the pandemic in the housing market.
Meanwhile, it is important to note that the Federal Reserve does not control mortgage rates, but it does affect them more than any other institution. During these pandemic times, the Fed has bought consumer mortgage rates worth of billions of dollars in efforts to keep the mortgage rates low during these unprecedented times. The efforts of the Fed seem to be working effectively since the mortgage rates have hit record lows nine different times since March 2020.
Moreover, the Fed’s position on employment and inflation policy could significantly help the rates remain low for years to come. However, although the Fed doesn’t set or control mortgage rates, it had played a significant role in holding them down during this pandemic times.
Through Quantitative Easing (QE), the Fed can directly impact mortgage rates. QE occurs when the Fed injects money into the U.S economy to prevent the rates from skyrocketing, to encourage consumers to keep borrowing money and keep the dollar circulating. This is what happened during the early stages of the pandemic, where the Fed bought consumer mortgages worth billions of dollars on the second marketplace. More capital in the second marketplace translates to lower interest rates for consumers. Moreover, the Fed, through the Federal Open Market Committee (FOMC) is known worldwide as the keeper of the Federal Funds Rate, which is the prescribed rate at which banks lend money to each other on an overnight basis. The Fed Funds Rate is correlated to Prime rate, which is the lays the basics for most bank lending, including consumer credit cards and business loans. Low Fed Funds Rate indicates that the Fed is trying to promote economic growth.
However, the same low Fed Funds rate can bring about wage pressure and promote risk-taking, both of which could easily cause inflation. This explains why the Fed ended scrapped its zerointerest-rate policy in December 2015.
Despite the Fed news, mortgage rates have remained relatively stable because mortgage rates are neither set nor established by the Federal Reserve, or any of its members. Rather, the rates are determined by the price of mortgage-backed securities (MBS) sold via Wall Street.
Work cited.
https://themortgagereports.com/17724/how-mortgagerates-move-when-the-federal-reserve-meets
FARE THEE WELL:
The family, friends, former colleagues and other loved ones across California were saddened by the demise of former California Assemblymember Gwen Moore on August 19, 2020.
Moore first appeared in the state legislature after being elected in 1978 and served Californians for 16 years until 1994. Moore was elected to represent California’s 49th district (restricted and renumbered in 1990 as the 47th district), which currently includes Long Beach, Catalina Island, and parts of Los Angeles and Orange counties.
During her service period in the state legislature, Moore introduced over 400 bills that were signed into law. Moreover, she also served as Majority Whip and was a member of several other influential committees, including the Assembly Utilities and Commerce Committee.
Gwen Moore was also the architect and the force behind California General Order 156; a state supplier diversity program that has strengthened and stabilized several Blackowned, women-owned, and other minorityowned small businesses in California, by helping the land lucrative state contracts.
Later on, Moore resigned from the state legislature and decided to run Secretary of State. Although she didn’t secure the position, she pursued other niches outside public offices that significantly influenced state policymaking, impacting lives of many people. Moore also served in several management boards that include; California State Bar of trustees, the California Small Businesses Association, and the national board of the NAACP. Besides that, she also served as the First Vice President of the California State Conference of the NAACP, Vice-Chair of
the California Utility Diversity Council and Chairwoman of the California Black Business Association. Moreover, Moore was the founder and CEO of L.A-based GeM Communications Group. She was also a sought-after consultant who had worked with several prominent clients state-wide.
For her impeccable service in California and the whole of the U.S, Moore won numerous national and local awards and recognition including honours from the U.S Department of Commerce and the NAACP Legal Defence Fund. Moore will forever be remembered for her service and the impact she has brought to many Californians and Americans in general, especially the African-Americans and the minority community at large. She indeed left a legacy behind.
From The Power Is Now, we give our heartfelt condolences to her friends, family and former colleagues. Fare thee well Hon. Gwen Moore.
Work cited. https://sacobserver.com/2020/08/rest-in-peace-formercalifornia-assemblymember-gwen-moore-passes-away/.
