Fed Announces Slow Approach to Interest Rate Increases in 2015

first_img Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily in Daily Dose, Featured, Government, News Home / Daily Dose / Fed Announces Slow Approach to Interest Rate Increases in 2015 Tagged with: Federal Open Market Committee Federal Reserve FOMC Interest rates The Best Markets For Residential Property Investors 2 days ago Related Articles The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington’s student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News’ sister publication, MReport, which focuses on mortgage banking news. Demand Propels Home Prices Upward 2 days ago December 17, 2014 993 Views center_img Servicers Navigate the Post-Pandemic World 2 days ago About Author: Tory Barringer Federal Open Market Committee Federal Reserve FOMC Interest rates 2014-12-17 Tory Barringer Servicers Navigate the Post-Pandemic World 2 days ago Previous: MCS Valuations Announces Management Changes Next: DS News Webcast: Thursday 12/18/2014  Print This Post Fed Announces Slow Approach to Interest Rate Increases in 2015 Data Provider Black Knight to Acquire Top of Mind 2 days ago The Federal Reserve announced Wednesday that it intends to take a slow approach to raising interest rates in the coming year, even as the economy continues to strengthen.In a policy statement released following the last 2014 meeting of the Federal Open Market Committee (FOMC), the central bank reaffirmed its view that the economy is expanding at a “moderate pace,” pointing to continued improvements in the labor market tempered by still-high numbers of unemployed and underemployed Americans and slower growth in the housing sector.Given the current climate, the committee hinted that it will take steps to raise short-term interest rates in 2015, though it still would not commit to a time frame, saying only that “it will likely be appropriate to maintain … the [current] federal funds rate for a considerable period of time.””Based on its current assessment, the Committee judges that it can be patient in beginning to normalize the stance of monetary policy,” the Fed said in its statement.While the phrase “considerable period of time”—commonly interpreted by analysts to be around six months—is not a new addition to the Fed’s language, policymakers did clarify that they’re counting the time from when the central bank ended its asset purchase program in October. If the interpretations hold out, that could signal an increase as soon as April, though many economists expect June is more likely.In a survey, 15 of 17 officials at the Fed predicted an increase in interest rates starting next year, with the other two saying the first hikes will come in 2016.At the same time, their forecast for rates slipped to 1.125 percent by year-end 2015, down from the last outlook in September.Perhaps encouraged by recent monthly payroll numbers, officials predicted the unemployment rate next year will drop to 5.2–5.3 percent, a more optimistic outlook than in September. As of November, the national unemployment rate was 5.8 percent.Economic growth, meanwhile, was pegged at 2.6–3.0 percent for 2015, unchanged despite a rosier outlook for 2014. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Subscribelast_img read more

Report: Weak Inventory, Lower Affordability, Tight Credit Hindering Housing Recovery

first_img The recovery of the housing market continues at a slower-than-expected pace due to weak inventory, slowing demand, and rising prices, according to Auction.com’s Real Estate Nowcast for March 2015 released on Tuesday.March’s Real Estate Nowcast predicted that existing home sales for March would fall between 4.83 and 5.12 million on a seasonally adjusted annualized basis. The target number for existing home sales of 4.97 million is an increase of 1.9 percent month-over-month and 5.8 percent from March 2014.”The housing market is continuing to recover, but at a slower, more incremental pace than what most people had hoped for in 2015,” Auction.com EVP Rick Sharga said. “Three main problems continue to prevent more robust growth: extraordinarily limited inventory, especially at the entry level of the market; lower affordability, as home price increases have significantly outpaced wage growth; and tight credit for all but the most highly-qualified borrowers. This adds up to an especially difficult ecosystem for first-time homebuyers to navigate, and we continue to see less home sales to that segment of the market than what we’ve seen historically.”The report found that the target sales price for existing homes was $204,165 in March, a year-over-year increase of 3.8 percent. While home prices are increasing, their growth is decelerating, likely due to a realization of the recent weakness in sales, according to Auction.com.According to Auction.com’s chief economist, Peter Muoio, the deceleration of price growth could slow affordability deterioration, thus boosting home sales – especially if the predicted wage growth comes to pass.”Despite some recent softness in several economic indicators, the US economy – especially the labor market – appears to be on solid footing,” Muoio said. “Unemployment is descending, voluntary quits are increasing, and consumer confidence has breached the 100 index level mark, bringing it firmly back into ‘normal’ territory. These are all positives for future housing demand and we continue to expect the housing recovery, now in a winter-like dormancy, to show signs of growth as the year progresses.”Auction.com’s Real Estate Nowcast included findings similar to those in Fannie Mae’s March 2015 Economic and Housing Outlook released on Monday, which reported slower GDP growth in the first quarter due to “temporary factors,” among those being a weak inventory. Fannie Mae forecasted that wage growth would catch up to employment gains before the end of the year and that the economy would “drag housing upward.”Recent reports by the National Association of Realtors (NAR) also fall in line with the forecasts of Auction.com’s Real Estate Nowcast. February existing home sales were at 4.88 million, according to NAR, which falls in the rate of Auction.com’s revised range of 4.87 to 5.19 million for the month. NAR’s reported existing sales home price of $202,600 for February was close to Auction.com’s forecasted price of $201,077 for the month – a year-over-year increase of 7.5 percent.Click here to see a video of Auction.com EVP Rick Sharga discussing the latest Nowcast. Related Articles Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post Home / Daily Dose / Report: Weak Inventory, Lower Affordability, Tight Credit Hindering Housing Recovery Report: Weak Inventory, Lower Affordability, Tight Credit Hindering Housing Recovery Auction.com Existing Home Prices Existing Home Sales Housing Market 2015-03-24 Brian Honea March 24, 2015 1,219 Views Share Save Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Demand Propels Home Prices Upward 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago About Author: Brian Honea Previous: Ocwen Announces $25 Billion MSR Sale to Nationstar Next: SecureView’s Distribution Network Expands to Nationwide Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe in Daily Dose, Featured, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Auction.com Existing Home Prices Existing Home Sales Housing Market Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days agolast_img read more

Equity holdings boost returns at Finland’s Etera

first_imgFinland’s Etera saw its listed equity portfolio boost returns for the first half of 2015 to 3.7%, as its solvency level continued to recover.The pension mutual said assets under management were approaching €6bn by the end of June, while year-to-date returns rose further to 4.2% when taking into account results from July.Stefan Björkman, the provider’s managing director, praised its continued active investment in domestic markets, highlighting its stakes in property and corporate bonds. Currently, 40% of Etera’s assets are invested in Finland.Listed equities were the provider’s best performer during the first six months of the year, retuning 8.5% compared to 9.6% for the first half of 2014. However, returns from equities as a whole outpaced 2014’s results by 0.9 percentage points, standing at 7.8. Its fixed income portfolio remained flat, returning 2.4%, while property dropped slightly year-on-year to return 2%.The mutual also continued to see improvements to its solvency level after questions over its future viability as a standalone entity emerged in late 2013.At the time, Etera reported a solvency level of 16.2%, which has improved to 17.2% by the end of June.Rival pension provider Ilmarinen saw returns of 6.2% over the first six months of the year, and Varma reported returns of 4.3%.last_img read more

MBB : STILL SOARING: Orange holds off Golden Eagles’ comeback attempt to remain undefeated

first_imgWith Syracuse’s perfect start perhaps swaying in the balance, Dion Waiters vaulted in front of Darius Johnson-Odom, determined to preserve it for at least one more game.Johnson-Odom rose for a 3-pointer with just more than four minutes left, making an effort to carry on a Marquette comeback from what once was a 23-point deficit. But Waiters swatted the crucial shot away with his right hand, taking the ball the other way for a layup.The play was a five-point swing. The Golden Eagles’ leading scorer tried to cut SU’s once-insurmountable lead to just one. Waiters pushed it to six.‘If you lose a lead, especially at home, it’s easy to start worrying and thinking about what’s happening,’ SU head coach Jim Boeheim said. ‘And instead I thought — obviously Dion made a huge block, finished it at the other end.’Waiters came up with the big play and some of his teammates contributed in the waning minutes as well, as No. 1 Syracuse (17-0, 4-0 Big East) hung on to defeat No. 20 Marquette (12-4, 1-2) 73-66 in front of a season-high crowd of 25,412 in the Carrier Dome on Saturday. Syracuse played a remarkably crisp first half defensively, holding the Golden Eagles without a field goal for a stretch of 11:13 as the Orange went on a 23-1 run. Boeheim even said it was the best his defense has been all year.AdvertisementThis is placeholder textYet Marquette stormed back. The Golden Eagles never led, but cut SU’s lead to as little as two, leading to some tense moments down the stretch as the Orange scrambled to unearth its first-half dominance. ‘We just came out lackadaisical I guess and not really playing defense,’ Waiters said of the second half. ‘And it hurt us, turned into a ballgame.’The near-collapse came after Syracuse ran laps around Marquette in the first half. In SU’s first game against a ranked Big East team this season, it appeared to be no sweat at all in the first 20 minutes.Marquette forward Davante Gardner bodied Baye Keita in the paint to score a bucket, pulling the Golden Eagles within 12-11 with 13:31 left in the first half. But that would be the last shot to fall for Marquette for more than one-quarter of the game.Vander Blue’s 3 from the right wing with 2:18 to go was Marquette’s first field goal since Gardner’s bucket. By then, SU’s lead had ballooned to 35-15.‘We were playing unbelievable defense in the first half,’ Waiters said.Fab Melo took four charges in the first half — three of them while battling foul trouble. SU’s offense struggled to ignite, but eventually, Brandon Triche and Kris Joseph buried the Golden Eagles with 3-pointers. Joseph led SU with 17 for the game and Triche added 16.With the Orange leading 23-12, Triche missed his own shot, but muscled inside to grab the rebound on the baseline. He found Waiters, who found Joseph — who buried a 3 from the top of the key, prompting a Marquette timeout. Less than two minutes later, a Triche triple boosted the lead to 31-12.But SU’s momentum was sapped soon after coming out of the locker room for the second half, and suddenly, the Orange couldn’t do much offensively or defensively.‘The way they were playing, they weren’t as active, I think, first half,’ Triche said. ‘In the second half they were moving, getting to spots, getting there a little faster. I think they were much easier to guard in the first half.’With three fouls, and not in perfect position, Melo didn’t go hard after Marquette guard Junior Cadougan in the lane, and he made a layup to cut the score to 42-32 less than five minutes into the second half.Marquette’s defensive pressure ramped up as well. The Golden Eagles forced nine second-half turnovers while giving the ball up just four times.‘They drove and we didn’t get in front of them,’ Boeheim said. ‘And part of it’s what they did well and part of it’s what we didn’t do well.’The lead never grew larger than nine for the final 11:33. Syracuse lost its explosiveness on offense and tenacity on defense.Marquette began to hit clutch shots. Blue found Cadougan on the right wing for a 3 to bring the Golden Eagles within 51-48 — and there was still 9:17 left to be played. Boeheim called a timeout, and Marquette’s players celebrated the surge.With SU regaining distance, now up 57-49, Jae Crowder buried a 3 from the left wing, putting a finger to his lips and shushing the crowd as he stared down the Orange bench.And Johnson-Odom had an opportunity to quiet the Carrier Dome again. He could have pulled Marquette within 61-60, bringing the game as close as it had been since it was scoreless.But Waiters made what SU guard Scoop Jardine deemed the play of the game. He kept the Orange perfect after a second half that was far from it.‘When the game got down to the line we made a couple plays,’ Boeheim said, ‘and I think that’s a great thing.’[email protected] Published on January 6, 2012 at 12:00 pm Contact Mark: [email protected] | @mark_cooperjr Commentscenter_img Facebook Twitter Google+last_img read more