Tuesday, October 11, 2016 - Article by: Laura Bromhead - Prospect Financial Group, Inc. -
Every year there are many important meetings that the Federal Reserve holds. They discuss the economy and what new policies may arise from economic changes. A daunting question is how does Economic Symposium, and how does it affect the mortgage market? This meeting is one example of the many meetings that are held yearly that potentially affect
What is the Kansas City Federal Economic Policy Symposium?
The Federal Reserve Bank of Kansas City hosts the annual economic policy symposium. "The event is designed as a forum for central bankers, policy experts and academics to come together to focus on a topic that is not necessarily of immediate concern, but instead looks into the future at emerging issues and trends." The anticipated symposium fosters a place for open discussions that are not . Only a select few have a reserved spot at the event, and tend to favor world-wide media outlets. This provides transparency, so the proceedings are not influenced.
Where rates affected?
The Fed is tasked to setting federal funds rate. Although mortgage rates are not directly tied to the federal funds rate, it does affect them indirectly. It impacts the lender's borrowing costs, passing them onto the borrower. The Fed looks at economic data to determine whether a rate hike would be in the best interest for the economy. This year, the Symposium had little effect on rates. Consequently, rates changed slightly during and proceeding the symposium. Shortly after the event ended, rates inched back down to what they had been at prior to the meeting. It seems like they only changed because of the uncertainty of what was to come and to act as a buffer.
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