Some hopes fading for September Fed rate cut
National Mortgage News
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While all but one of the 49 economists surveyed by Wolters Kluwer this month expect the Federal Open Market Committee to cut short-term rates this year, they are more pessimistic than in June about when that first cut will occur. None now expect the first cut to occur at the July meeting, versus 9% of respondents in the June Blue Chip Economic Indicators survey. In the most recent poll, 55% believe the FOMC will act in September, down from 64% in the June survey. At one point before the start of 2024, many observers were expecting the FOMC to make six cuts this year .
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Mortgage rates fell to their lowest level since March, reflecting the continued optimism that the pace of inflation is getting to the point where the Federal Open Market Committee will act. The 30-year fixed rate mortgage fell to 6.77% on July 18, a decline of 12 basis points from previous week's 6.89%, and 1 basis point lower from 6.78% for the same time in 2023, the Freddie Mac Primary Mortgage Market Survey reported. At the same time, the 15-year FRM has similar weekly and annual drops, to 6.05% from 6.17% and 6.08% respectively.
Servicing technology provider Sagent welcomed a new C-suite executive, who comes to the company from a mortgage heavyweight and investor it is cooperating closely with in a 2024 product rollout. The King of Prussia, Pennsylvania-based technology firm named Jaime Gow chief financial officer. Gow arrives at Sagent after recently holding the same CFO title at Mr. Cooper Group. One of the largest mortgage servicers in the country, Mr. Cooper owns a stake in Sagent and is helping introduce its new servicing technology platform this year.??
The House Financial Services Committee's task force on artificial intelligence questioned federal bank regulators, nonbank financial firms and mortgage companies on their use of AI, and to what extent Congress should consider legislation on the topic, according to a report released by the panel on Thursday. The report is the first public action of the working group, a bipartisan effort. Some agencies said that they did not need federal legislation to address AI concerns, while others said it would be helpful.? "Certain agencies indicated legislative gaps could appear as AI becomes more widely adopted and sophisticated," the lawmakers said in the report.?
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