Will the Fed Hike Rates in Late Summer?

As any mortgage banking veteran can tell you, the two key drivers of home loan demand are interest rates and jobs. Rates continue to look enticing (though not as enticing as early December) and the job market seems to be improving. (We’ll know for sure when the new employment numbers are released this Friday.) Meanwhile, the U.S. dollar is still weak and I don’t have to tell you how ugly oil prices look. So, what were the experts saying this morning about rates? Answer: that the Federal Reserve may sneak in a rate hike by the end of summer. But even if the FOMC votes to increase rates it likely will be a 25 basis point jump only. As mortgage bankers can attest, the most important factor holding back a true recovery in real estate is the ultra-tight underwriting standards of Fannie Mae and Freddie Mac. To fix that you’ll have to talk to the folks at Treasury and the Federal Housing Finance Agency…