Tag Archives: interest rates

Fed in no hurry to raise interest rates

WASHINGTON (AP) — Federal Reserve officials struggled last month to assess when economic data might prompt them to raise interest rates from record lows — and how best to convey their intentions to investors.

Minutes of the Fed’s Jan. 27-28 meeting released Wednesday suggest that policymakers aren’t ready to start raising rates anytime soon, with some expressing concerns about excessively low inflation, lingering weakness in the U.S. job market and economic threats overseas.

The Fed’s benchmark interest rate has been near zero since December 2008.

Many officials “observed that a premature increase in rates might damp the apparent solid recovery in real activity and labor market conditions,” said the minutes, released after a customary three-week delay.

Analysts said they believed the minutes made a June rate hike less likely, given the concerns expressed by various Fed officials about the state of the economy.

read more at: http://www.utsandiego.com/news/2015/feb/18/fed-officials-stress-patience-in-rate-hike-talks/

disclaimer: for information and entertainment purposes only

Fed Backs Away from Interest Rate Threshold

Federal Reserve policymakers backed away from their year-old commitment to consider raising interest rates when unemployment falls below 6.5 percent.

With the jobless rate falling faster than expected even as other labor-market indicators show weakness, policymakers agreed it would “soon be appropriate” to revise their guidance about how long the era of low interest rates will remain, according to the minutes of the Jan. 28-29 meeting released Wednesday.

Several policymakers also said that in “the absence of an appreciable change in the economic outlook, there should be a clear presumption in favor” of continuing to trim the Fed’s bond purchases by $10 billion at each meeting.

Central bankers are seeking to provide clarity on their plans for continuing to support the economy, both with low interest rates and dwindling bond purchases, after unemployment dropped last month to 6.6 percent, the lowest in more than five years.

read more at: http://www.utsandiego.com/news/2014/feb/20/tp-fed-backs-away-from-interest-rate-threshold/

Disclaimer: for information and entertainment purposes only

Doing Math On Homebuying – Is it a good time to stop renting and buy?

San Diego County Rental Stats

 

Sep-12 Sep-13 % change

 

Average monthly rental rate $1,377 -$1,475 7.1%

 

Average square footage 870- 873   0.3%

 

Average price per $1.58 –  $1.69    7.0%

 

Vacancy rate 4.50%-  4.61%        2.4%

 

Source: MarketPointe Realty Advisors

Pros of renting:

• Greater mobility. Selling or buying a home has transaction cost and can take time.

• You can call the landlord for repairs

• There’s no resale risk. While home prices have been rising in San Diego County, there’s no guarantee that the value will increase over time.

Cons of renting:

• The landlord can kick you out if, for example, he or she decides to sell the place

• No equity is built up: “Renting is throwing money away,” said Linda Lee, president of San Diego Association of Realtors.

• You can’t paint or remodel without the owner’s permission

Rates near historic lows

The monthly average 30-year, fixed mortgage rate rose nearly one percentage point from May to August to 4.46 percent, according to Freddie Mac, the government-controlled mortgage buyer. However, mortgage rates are still near historic lows. Throughout the 1980s, for example, they ranged from 9 percent to 18 percent.

For the San Diego metro area, mortgage rates would have to climb to 7.3 percent for renting to be cheaper than buying, according to a Trulia report released Thursday. Trulia calls this the mortgage-rate tipping point. The last time 30-year fixed mortgage rates were that high was about 12 years ago, according to Freddie Mac.

By comparison, the mortgage rate tipping point is 7 percent for Orange County, 5.7 percent for the San Francisco metro area and 5.2 percent for the San Jose metro area.

Read more at: http://web.utsandiego.com/news/2013/sep/21/tp-doing-math-on-homebuying/

Disclaimer: for information and entertainment purposes only