FOMC leaves rates unchanged, drops tightening language

The Federal Open Market Committee left the fed funds rate unchanged Wednesday, disappointing public officials advocating for a quick start to cuts that officials have made plans for this year; but its accompanying statement suggests it's getting closer to cutting. "The committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%," the FOMC said in a statement issued at the end of its two-day meeting on Friday. What may be more important is what was not in the statement. "They removed any language about the potential for future rate hikes," Melissa Cohn, regional vice president, William Raveis Mortgage, noted in an email.

READ MORE: FOMC leaves rates unchanged, drops tightening language

UWM gives brokers 100 basis points for rate-and-term refis

United Wholesale Mortgage wants its broker partners to get a head start on the next wave of refinances. The wholesale giant Wednesday announced Refi 100, a 100-basis point pricing promotion for conventional rate-and-term refi rates. The deal, eligible for new locks through March 29, comes as refis remain muted amid elevated rates and sluggish origination activity.? "While big banks and retail lenders wait for the refi boom, UWM is making it happen for our partners right now," the company said on its website. Qualifying loans must be at least a year from their previous note date, and no seasoning is required for non-UWM loans, the lender said.?

Mortgage application activity cools for first time in 2024

New loan application activity decreased for the first time this year, as declining purchases offset an uptick in refinances, according to the Mortgage Bankers Association. The MBA's Market Composite Index fell a seasonally adjusted 7.2% from the previous seven-day period. The drop comes after four straight weeks of increases, including a 3.7% rise in the prior survey. Elevated early 2024 activity coincided with recent moderation in interest rates, but compared to the same week last year, volumes were 13.1% lower.?

New York Community's shares sink 35% amid real estate stress

New York Community Bancorp's shares sank 35% on Wednesday as the Long Island-based regional bank recorded a sizable quarterly loss, reported troubles in its commercial real estate portfolios and slashed its dividend. Investors were caught off guard by the bank's earnings report, which revealed a series of moves the company took in preparation for rockiness in the real estate sector. The $116.3 billion-asset parent company of Flagstar Bank cited "weakness in the office sector" and the potential that its flagship multifamily portfolio will face stress from higher interest rates.

NVR sees profits thanks to homebuilder tailwinds

Construction tailwinds pushed NVR, Inc. to solid profits last year, with the mortgage banking unit seeing accelerated gains to end 2023, but homebuilding income slowed. Overall fourth quarter numbers met consensus estimates of analysts surveyed by Yahoo Finance, as the Reston, Virginia-based homebuilder and lender raked in $410 million in net income, equivalent to $121.56 per diluted share. But the total came in 5.4% lower from $433.2 million three months earlier. Fourth-quarter profit also fell 10.9% from $454.8 million year over year.

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