fed
Robinhood review: Low-fee trading on thousands of stocks & crypto
Robinhood seeks to level the investing playing field. Youâll save on commissions â money you can put toward growing your portfolio.Robinhood seeks to level the investing playing field. Youâll save on commissions â money you can put toward growing your portfolio.
The post Robinhood review: Low-fee trading on thousands of stocks & crypto appeared first on Money Under 30.
Inflation cooled in December for the sixth consecutive month
Overall inflation is cooling, but the index for shelter is still on the rise, as more Fed rate hikes are expected this year.
Mortgage and refinance rates today, Jan. 12, 2023
Today’s mortgage and refinance rates Average mortgage rates fell modestly yesterday. And it may be a similar story today. Because, so far this morning, markets are signaling that mortgage rates […]
OK, So Now What?
Recently, the bond market’s job description seems to be almost entirely focused on reacting to CPI and then waiting for the next one. Perhaps we can throw the Fed into the mix as well, but Fed days have been a distant second fiddle to CPI. So with CPI out just a day ago, what do we do until the next one comes out? What does the bond market do? These are surprisingly fair questions in early 2023, and we won’t be entirely sure of the answer until we see what actually happens. We know that markets were more than willing to react to other data besides CPI recently. This was especially true of last week’s various labor market reports on Thursday and Friday. Those actually made for bigger moves than yesterday’s CPI, but possibly because Thursday accounted for a quick break outside the prevailing consolidation pattern in Fed rate hike expectations and Friday quickly restored the range. Either way, it’s notable that this week’s CPI data merely left that range intact as opposed to challenging it (notable, but perhaps not surprising considering CPI was in line with expectations). That consolidation pattern suggests the Fed Funds Rate is homing in on 4.875% (technically 4.75-5.00 target range) as the “terminal rate” (aka ceiling). That would make the path of this rate hike cycle look like this, assuming the Fed can fulfill its goal of holding rates at the ceiling for a long time. While the Fed Funds Rate moves in a wider range than 10yr Treasury yields, the 10yr tends to move first–sometimes by many months. In late 2018 through the middle of 2019, 10yr yields were falling as the Fed Funds Rate held steady. Another takeaway from the chart above is that 10yr yields began to decline even as the Fed undertook the last leg of its rate hike cycle. In other words, the longer view was that, although the Fed would continue to hike just a bit more in the short term, rates would end up being lower, on average, over the next 10 years. That’s not too different from what many investors are thinking right now, with the downtrend in rates since November looking a lot like the initial drop from ceiling levels in late 2018. In the short term, the challenge for further progress would be to break below a level of 3.40%. While this isn’t some magical gateway that guarantees additional downward momentum in rates, it would be a somewhat important milestone that confirms traders are comfortable with tentatively beginning the journey toward lower long term rates. Whether that journey begins or not, it will still depend on incoming economic data. As long as the labor market situation remains strong and unless prices in the services sector unexpectedly deflate, the Fed won’t be seen as having any major motivation to be friendlier toward rates. That could ultimately change the traditional dynamic between longer and shorter term rates in the next few months.
December jobs report shows promising signs for mortgage rates – Mortgage Professional
December jobs report shows promising signs for mortgage rates Mortgage Professional
How to Successfully Integrate Smart Home Tech into Your Own Home
After a hard day at work, imagine coming back home and, instead of fumbling for your keys, you unlock your smart door lock with your phone, walk into your house, have the lights and your favorite music turn on automatically, and ask your virtual assistant to make you dinner. It seems like a pipe dream. […]
The post How to Successfully Integrate Smart Home Tech into Your Own Home appeared first on Fancy Pants Homes.
2022 Housing Market Year In Review: Looking Back on a Historic Year
Fed survey: Home Loan bank advances are popular liquidity fallback for banks
Federal Home Loan bank advances are a popular option for banks facing falling reserve balances, a recent survey from the Federal Reserve found. Among banks that are members of the Federal Home Loan Bank System, more than three-quarters of respondents would “very likely” turn to advances to increase reserve balances, according to the Fed’s most … [Read more…]
Plenty of Volatility After CPI Data
CPI came out very much in line with forecasts. We’d discussed the possibility of threading the needle in terms of financial markets not moving much in the event of an as-expected result, but warned that such outcomes are hard to accomplish when so much of the market is waiting to trade one instant of data. This morning serves as a great example of that difficulty as there have already been multiple lead changes in the first 90 minutes following the data. This is true for both stocks and bonds and the pattern is what we’ve come to expect when the market is adjusting its outlook for Fed policy based on relevant data. Specifically, stock prices and bond yields are moving in opposite directions with an almost perfect regularity. There’s no real significance to this other than to confirm that the trading reaction is focused on Fed policy implications.