FOMC

Mortgage rates dropped for the second consecutive week, although the yield on the benchmark 10-year Treasury actually increased during the period, according to Freddie Mac.

Federal Reserve officials said they would begin running off their $4.5 trillion balance sheet “relatively soon” and left their benchmark policy rate unchanged as they assess progress toward their inflation goal.

A divided Federal Reserve policy committee couldn’t reach agreement in June on the timing of when to begin shrinking its massive balance sheet, according to minutes of the meeting.

The Federal Reserve can be patient in setting monetary policy and the current rate may be the right level for the forecast horizon, Federal Reserve Bank of St. Louis President James Bullard said Friday.

Fed Chair Janet Yellen called the Treasury's report a "complicated document" that shared many of the central bank's objectives, including reducing regulatory burden without sacrificing safety and soundness.

Federal Reserve officials forged ahead with an interest-rate increase and additional plans to tighten monetary policy despite growing concerns over weak inflation.

Federal Reserve officials surprised some onlookers by unveiling a rough plan for balance sheet runoff in the minutes for their May meeting.

Mortgage applications increased 2.4% from one week earlier as there was little movement in interest rates, according to the Mortgage Bankers Association.

Mortgage rates held steady in anticipation of the Federal Open Market Committee not increasing short-term rates at its meeting Wednesday, according to Freddie Mac.

For the first time since the Federal Open Market Committee acted five weeks ago, there was an increase in mortgage rates.