{"id":9504,"date":"2009-08-13T14:58:00","date_gmt":"2009-08-13T21:58:00","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=9504"},"modified":"2009-08-13T11:02:04","modified_gmt":"2009-08-13T18:02:04","slug":"the-fed-translated-and-why-it-isnt-good-for-interest-rates","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9504\/the-fed-translated-and-why-it-isnt-good-for-interest-rates\/","title":{"rendered":"The Fed Translated &#8211; and why it isn&#8217;t good for interest rates&#8230;.."},"content":{"rendered":"<p>My apologies for taking almost 24 hours after the Fed to get this up.\u00a0\u00a0 As I\u2019ve done in the past, I want to go through what the Fed said yesterday and give some insights into what I think it means for the housing and mortgage markets.\u00a0\u00a0 You can find the entire FOMC statement at <a href=\"http:\/\/federalreserve.gov\/\" target=\"_blank\">Federal Reserve.gov<\/a>.\u00a0\u00a0\u00a0 As usual, my comments will be inserted inside the statement and will be in bold and italics.\u00a0\u00a0 Here goes:<\/p>\n<h5>For immediate release<\/h5>\n<p>Information received since the Federal Open Market Committee met in June suggests that economic activity is leveling out. <strong><em>I think it\u2019s important to notice that they didn\u2019t say things are improving, just leveling out.\u00a0\u00a0 The Fed never uses any words without a reason. <\/em><\/strong>Conditions in financial markets have improved further in recent weeks. Household spending has continued to show signs of stabilizing but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit.\u00a0 <strong><em>I think that what they mean by household spending is stabilizing is that people have slashed and burned their budgets down to the minimum and aren\u2019t cutting back further.\u00a0\u00a0 However, if you look at the <a href=\"http:\/\/www.cnbc.com\/id\/32400141\" target=\"_blank\">Retail Sales Report<\/a> this morning, it raises a question of whether household spending is stabilizing.<\/em><\/strong> Businesses are still cutting back on fixed investment and staffing <strong><em>that\u2019s a nice way of saying jobs are still being lost <\/em><\/strong>but are making progress in bringing inventory stocks into better alignment with sales. <strong><em>inventory in better alignment with sales \u2013 what that really means is that the jobs that \u201cmake things\u201d are still being eliminated. <\/em><\/strong> Although economic activity is likely to remain weak for a time <strong><em>a time \u2013 that\u2019s a nice way of saying we\u2019re in for a long slow climb back<\/em><\/strong>, the Committee continues to anticipate \u201c<strong><em>continues to anticipate\u201d is that sort of like, \u201cPlease, please please, I really really want it?\u201d<\/em><\/strong> that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability.\u00a0 <strong><em>They have had this sentence in there for a <a href=\"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9504\/the-fed-translated-and-why-it-isnt-good-for-interest-rates\/#more-9504\" class=\"more-link\">Read more<\/a><\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>My apologies for taking almost 24 hours after the Fed to get this up.\u00a0\u00a0 As I\u2019ve done in the past, I want to go through what the Fed said yesterday and give some insights into what I think it means for the housing and mortgage markets.\u00a0\u00a0 You can find the entire FOMC statement at Federal [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[62,29,26],"tags":[387,178,184,386],"class_list":{"0":"post-9504","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-dirty-laundry","7":"category-group-therapy","8":"category-lending","9":"tag-300-billion","10":"tag-mortgage-rates","11":"tag-the-federal-reserve","12":"tag-treasuries","14":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":761,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/761\/why-the-fed-matters-to-real-estate\/","url_meta":{"origin":9504,"position":0},"title":"Why The Fed Matters to Real Estate","author":"Dan Green","date":"December 12, 2006","format":false,"excerpt":"The Federal Open Market Committee meets today and will keep the Fed Funds Rate unchanged at 5.250%. It is not what the Fed does, however, that should concern Americans. It's what the Fed says. First, a clarification. The Fed Funds Rate is directly tied to Prime rate which impacts lines\u2026","rel":"","context":"In &quot;Enduring Interest&quot;","block_context":{"text":"Enduring Interest","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/enduring-interest\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2529,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2529\/amaze-your-friends-why-the-surprise-fed-funds-rate-drop-isnt-impacting-mortgage-rates\/","url_meta":{"origin":9504,"position":1},"title":"Amaze Your Friends : Why The &#8220;Surprise&#8221; Fed Funds Rate Drop Isn&#8217;t Impacting Mortgage Rates","author":"Dan Green","date":"January 22, 2008","format":false,"excerpt":"Advanced Fiscal Literacy For Real Estate Professionals The Fed Funds Rate is a fair proxy for economic health.\u00a0 When the economy is growing, the FFR\u00a0rises to fight inflation. When the economy is slowing, the FFR\u00a0falls to fight \"the absence of inflation\" (i.e recession). If inflation is the enemy of mortgage\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6769,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6769\/the-fed-translated-4\/","url_meta":{"origin":9504,"position":2},"title":"The Fed Translated&#8230;..","author":"Tom Vanderwell","date":"January 30, 2009","format":false,"excerpt":"Tom here\u2026.\u00a0 Sorry for the delay, but better late than never\u2026.. (my comments are in bold) The Federal Open Market Committee decided today to keep its target range for the federal funds rate at 0 to 1\/4 percent. Nothing new there and no surprises.\u00a0 Can\u2019t go lower than zero and\u2026","rel":"","context":"In &quot;General&quot;","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8184,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8184\/the-fed-translated-6\/","url_meta":{"origin":9504,"position":3},"title":"The Fed Translated&#8230;.","author":"Tom Vanderwell","date":"April 30, 2009","format":false,"excerpt":"Yep, it's that time again.\u00a0\u00a0\u00a0 The Fed met yesterday and today and came out with their announcement this afternoon at 2:15 pm.\u00a0\u00a0 I promise that this one won't be as long as the last Fed Translated was.As usual, my comments are in bold and italics.....April 29, 2009For Immediate Release:Information received\u2026","rel":"","context":"In &quot;Group Therapy&quot;","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3284,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3284\/mortgage-market-week-in-review-the-fed-translated\/","url_meta":{"origin":9504,"position":4},"title":"Mortgage Market Week in Review &#8211; the Fed Translated&#8230;.","author":"Tom Vanderwell","date":"June 27, 2008","format":false,"excerpt":"Hi all, I want to thank Greg and Teri and Brian and....everyone for the honor of being invited to hang out with such an esteemed bunch.\u00a0 I'm really excited about it and looking forward to working, talking and \"raising the bar.\" I'll do up a post next week telling a\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6152,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6152\/the-fed-translated-3\/","url_meta":{"origin":9504,"position":5},"title":"The Fed Translated&#8230;..","author":"Tom Vanderwell","date":"December 16, 2008","format":false,"excerpt":"Release Date: December 16, 2008 The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1\/4 percent. What\u2019s up with the \u201crange\u201d of rates?\u00a0\u00a0 Well, they\u2019d look pretty foolish if they said they wanted the rate to be at .25%\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/9504","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=9504"}],"version-history":[{"count":3,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/9504\/revisions"}],"predecessor-version":[{"id":9507,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/9504\/revisions\/9507"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=9504"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=9504"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=9504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}