FOMC

Policymakers may not wait until their mid-month meeting and could act with other central banks.

The Federal Reserve is monitoring the COVID-19 issue and its economic effects, according to a release from the central bank, attributed to Chairman Jerome Powell, released Friday.

Mortgage rates rose slightly with a stronger-than-expected jobs report starting the week and the Federal Open Market Committee decision to hold the line on short-term rates ending it, according to Freddie Mac.

For the mortgage industry, the question of whether the Fed can control its target range for interest rates is crucial for managing volatility.

The commercial mortgage-backed securities sector will weather the fourth quarter's slowing but steady growth in the U.S. economy, as better loan performance counters a continued decline in volume, Morningstar said.

The spike in overnight repurchase agreements may prompt the Federal Reserve to expand its balance sheet.

Wide short-term swings in interest rates — and loan prepayments — that we've all witnessed have serious secondary effects on consumers, lenders, investors and also policymakers.

Mortgage rates were unchanged from last week, but going forward, they are likely to decline following investors' reaction to the Federal Open Market Committee's July 31 short-term rate cut announcement.

The Federal Reserve reduced short-term rates for the first time in years, and accelerated its plan to stop shrinking the Fed’s balance sheet by rolling maturing mortgage-backed securities into Treasuries.

Bond market investors acted cautiously in the wake of next week's Federal Open Market Committee meeting and that likely resulted in mortgage rates moving lower this past week.