Fed’s Kaplan: Wants ‘gradual’ rate hikes but doesn’t expect ‘pause’ in policy track

Dallas Federal Reserve President Robert Kaplan wants a “gradual and patient” approach to raising interest rates this year but said that doesn’t necessarily include a “pause” in the Fed’s rate-tightening policy. With its rate hike last week, Fed members signaled rough forecasts for two more rate hikes this year. San Francisco Fed President John Williams said Thursday that the Fed could approve up to a total of four hikes this year if economic improvement calls for such action. Kaplan didn’t offer a number of anticipated hikes and said he’d like the opportunity to “turn over more cards” to judge the economy but said progress toward the dual inflation and employment mandates allowed for more accommodation reversal. That reversal will eventually include letting the Fed’s $4.5 trillion balance sheet run off, but not until more action is taken to get the Fed funds target, the Fed’s main interest-rate tool, back up toward a “neutral” rate. Kaplan said the Fed puts that neutral rate at a median 2.75%.

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From:: Stock Market News

Freddie’s New Business Sinks to 12-Month Low

It’s been a year since secondary activity was this low at the Federal Home Loan Mortgage Corp. Delinquency, meanwhile, fell to a new post-crisis low.

Purchase and issuances during February at Freddie Mac came to $29.032 — the slowest month since February 2016, when the total was $26.034 billion.

The McLean, Virginia-based company disclosed the metrics, along with other operational results, in its Monthly Volume Summary: February 2017.


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From:: Financing

Mortgage Rates Tumble, Could Stay Down

Prospective home loan borrowers got a break on rates this past week. Odds are rates will stay down or dip a little further in the next report.

In Freddie Mac’s Primary Mortgage Market Survey for the week that ended on March 23, thirty-year fixed rates averaged 4.23 percent.

That was 7 basis points lower than in the previous survey. But the 30 year still stands well above 3.71 percent as of the same week last year.


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From:: Financing

Tronc to buy back 3.75 million shares from Oaktree Capital

Tronc Inc. , the publisher of the Los Angeles Times and the Chicago Tribune, will buy back 3.75 million shares from Oaktree Capital Management LP at $15 a share. The media company also agreed to pay Oaktree additional funds if there is an ownership change within one year at above $15 a share, according to a regulatory filing Thursday. At the same time Oaktree is not allowed to buy additional shares nor take action to influence any potential decision by Tronc to buy or sell assets for two years. Tronc shares fell 1.2% after hours.

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From:: Stock Market News

Home Depot discloses EPA investigation into lead safety practices

Home Depot Inc. is under an Environmental Protection Agency investigation into the company’s compliance with lead safety work practices for certain jobs performed through Home Depot’s installation services business, Home Depot said Thursday in a filing. The company is cooperating with the EPA, it said. Shares of Home Depot fell 0.3% during the extended session after ending the regular trading day up 0.4%.

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From:: Stock Market News

CBO analysis of amended Republican health bill shows less deficit reduction

A Congressional Budget Office analysis of an amended Republican health-care bill found it would reduce deficits by less than an earlier analysis. The new CBO report said the bill would cut deficits by $150 billion over 10 years, compared to a prior estimate of $337 billion. The new bill would still leave 24 million more people uninsured in 2026, CBO said.

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From:: Stock Market News

New-Home Sales Heat Up to Seven-Month High in February

By Susanne Dwyer

New-home sales heated up to a seven-month high in February at 592,000, a 6.1 percent increase, according to the U.S. Census Bureau and the Department of Housing and Urban Development (HUD). The average new-home sales price was $390,400, while the median was $296,200. New-home listing inventory was 266,000—5.4 months supply.

New-home sales sizzled compared to a tepid January, when activity was stifled by limited new supply.

“This growth was likely spurred by several factors, including a warm winter that allowed builders to stick to construction schedules, last year’s strong home construction starts, and a gradual shift from building apartments to individual homes,” says Joseph Kirchner, senior economist at realtor.com®.

“While this growth is encouraging, it’s important for house hunters to keep in mind that builders have been focusing on the more pricey part of the market; affordable options are still in short supply. That’s a key reason why existing-home sales dropped in February while sales of new homes went up—existing home sales include both affordable and premium homes. During that month, sales of existing homes under $100,000 plummeted 15 percent and sales of homes in the $100,000 to $250,000 range fell 2 percent, while sales of more expensive existing homes soared.”

Source: U.S. Census Bureau

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From:: Real Estate News