WSJ: 7 Takeaways From the January Fed Statement: ‘The Committee Judges That It Can Be Patient’

What caught our eye in the Federal Reserve’s January policy statement released Wednesday.

No Rate Hikes Until at Least June as Fed ‘Patient’

Fed officials have reaffirmed their assurance they are likely to remain patient in considering the timing of the first interest rate increase since 2006. That, according to Yellen, means no lifting rates from zero for at least another two policy meetings.—Pedro Nicolaci da Costa........Read More

Mortgage Rates Improve Modestly Ahead of Fed Announcement

Mortgage Rates Improve Modestly Ahead of Fed Announcement

Mortgage rates continued a recent pattern of small day-to-day changes today.  This time, however, lenders were more unified in a move to slightly lower rates.  The recent norm has been for different lenders to move in different directions but for the average to stay fairly close to unchanged.....Read More

Potential Home Buyers Sidelined by Misconceptions

Potential Home Buyers Sidelined by Misconceptions

Lack of knowledge and misinformation may be discouraging Americans from buying a home according to a recent survey sponsored by Wells Fargo &Company.  The survey, conducted in June by Ipsos Public Affairs, found that many prospective home buyers do not take the plunge because of uncertainty about their ability to qualify for a mortgage or about navigating the home buying process.

The survey, "How America Views Home ownership," found that many Americans say their financial houses are in order.  Eighty percent said they know how to handle their personal financial affairs and 82 percent claim they generally don't spend beyond their means.  Only 27 percent said that they tend to spend their money and not think twice about it.  Sixty-three percent, including more than half of the millennials (ages 18 to 34) in the survey, said they have a "rainy day fund."   These factors, the bank says, all improve on the ability to buy a home........

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LA Times: Why Reverse Mortgages Are a Wealth Management Tool

LA Times: Why Reverse Mortgages Are a Wealth Management Tool

Loan of last resort: It’s the mantra that long defined the reverse mortgage. But changes to the reverse mortgage program have made the loan more attractive for aging Americans, and are even considered a wealth management tool, according to personal finance columnist Liz Weston.

In a recent Los Angeles Times personal finance Q&A, Weston responds to a reader’s question about whether to take out a second mortgage to pay off the remaining debt in their home and fund necessary renovations. Instead of taking out a $200,000 mortgage, though, Weston advises the reader to consider a reverse mortgage. 

“Although once considered expensive loans of last resort for people who were running out of money in retirement, changes in the federal reverse mortgage program caused financial planners to reassess the no-payment loans as a potential wealth management tool,” she writes. “The idea is that homeowners could tap the reverse mortgage for funds, especially in bad markets, instead of depleting their retirement accounts.”

Still, reverse mortgages are complex products, she notes. 

“You’d be smart to find a savvy, fee-only financial advisor to assess your situation and walk you through your options.”

Six Economists Reach Similar Conclusions on 2015 Housing Outlook

http:// www.mortgagenewsdaily.com/01202015_housing_forecasts.asp