Dublin California Real Estate and Community

Economic News…We had a good dose of Fed Chief Janet Yellen this week as she spoke before both the Housing Financial Services and Senate Banking Committees. Her semi-annual testimony did not provide any bombshells as the tapering of the FED asset purchases continues and will more than likely wind down toward the end of the year. When will the FED Funds rate begin to rise? Well conventional wisdom is that sometime early in 2015 the first tick up in the rate will begin with the Fed Funds target at 1.00% by the end 2015. The overall timing alluded to by the Fed Chief is dependant on two factors: Employment and Inflation as well as the general health of the economic recovery. Stronger numbers equal sooner and any headwinds could mean a delay in a tighter monetary policy.

Mortgage Markets...remained relatively quiet again this week. The 10 Year Note is currently trading at 2.486% which is a slight improvement from last week’s closing yield of 2.52%.

Jack Copeland
Sr. Loan Officer NMLS# 256728
Diversified Mortgage Group
A division of CMG Mortgage Inc. NMLS #1820
5199 Johnson Drive Suite 110.
Pleasanton, CA 94588
925-426-8383 x 12
925-963-4070 Cell
925-226-4814 Fax