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A Simple Explanation Of The Federal Reserve Statement (August 12, 2009 Edition) Posted: 12 Aug 2009 02:37 PM PDT The Federal Open Market Committee voted to leave the Fed Funds Rate within its target range of 0.000-0.250 percent. It also reiterated plans to support the mortgage market to the tune of $1.5 trillion. In its press release, the FOMC noted that the U.S. economy is "leveling off" and that financial markets continue to improve. The change in verbiage is the rosiest from the Fed since the start of the recession and it may signal that the downturn's end is near. That said, the Fed highlighted lingering economic soft spots that could still impact a recovery through the end of 2009 and into 2010. Ongoing job losses Reduced "housing wealth" Tight credit conditions Furthermore, rising energy costs remain a threat to inflation. Also in its statement, the Fed confirmed its plan to hold the Fed Funds Rate near zero percent "for an extended period" and to honor its $1.25 trillion commitment to the mortgage bond market. Market reaction to the Fed's press release is muted. With no real change in message and a basic confirmation of what most investors already knew, Wall Street sees no reason to panic. Mortgage rates are unchanged. The FOMC's next scheduled meeting is September 22-23, 2009.

Closing On Or Near Labor Day? Plan Ahead. Posted: 12 Aug 2009 08:09 AM PDT As the unofficial end of summer, Labor Day weekend is popular vacation time for American families. And this year, with home sales on the rise and mortgage rates relatively low, early-September figures to be a popular closing date, too. These points may appear unrelated, but there is an important connection between them. Like workers in every other industry, employees of the mortgage, title, and real estate industries are just as likely to be taking time off on and around Labor Day. For buyers with pending contracts, therefore, the closer that early-September closing date gets, the fewer industry folks that will be working to help close on your new house. The same goes for households in the middle of a refinance. With less than 4 weeks until Labor Day, you can take steps today to prepare for other people's time off. Here's a few of them: Notify your lender of any planned vacation time between now and your scheduled closing. Purchase a homeowners insurance policy and prepay the first year, effective your closing date. Send proof of payment to your lender. Have Power of Attorney forms lender-approved and signed by all parties, if applicable. Deposit gift monies and/or retirement fund withdrawals into an acceptable bank account, if applicable. Schedule your final walk-through far enough in advance to resolve any issues that may arise Have your funds ready for closing at least 1 day early. And, perhaps most important, fulfill your mortgage lender's requests for additional supporting documentation within 24 hours of notice. This includes requests for updated paystubs, bank statements, and tax returns. The best reason to handle these tasks in advance is that, by the time Labor Day is around the corner, basic mortgage approval tasks will already take longer to complete -- from clearing conditions to sending a wire. Reduced staff means slower response times. Stay ahead of the curve and help save yourself from potential headaches down the road. And, if possible, avoid closing on the Friday before Labor Day and the Tuesday after. On these days, staffs are the most lean of all.

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