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Federal Reserve Turnover Could Affect Mortgage Rates
Two key leadership positions in the Federal Reserve are up for re-appointment this fall. The Biden administration is considering changing up the leadership to appoint officials who are more concerned with climate change, banking regulation, and income inequality. There is pressure from Progressive democrats to take this opportunity for change, countered by pressure from Wall Street to maintain the status quo.
30 Year Fixed Mortgage Rate
|Change From Yesterday||-0.015%|
|Change From One Week Ago||-0.024%|
|Change From One Year Ago||-0.136%|
15 Year Fixed Mortgage Rate
|Change From Yesterday||-0.018%|
|Change From One Week Ago||-0.010%|
|Change From One Year Ago||-0.393%|
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Biden is almost certain to replace the Federal Reserve vice chair, Randal Quarles. The vice chair has long been criticized for his failure to properly regulate banks. This replacement could give Biden the chance to appoint a female progressive that would satisfy the Democrats. This may give him the opportunity to retain the Federal Reserve chair, Jerome Powell. Powell has a strong base of bipartisan support, and has been internationally acknowledged as doing a good job with the Fed during the pandemic.
The Federal Open Market Committee is the 12 person working group that actually sets Federal Reserve policies. The group meets eight times a year, and publishes a report of the new policy changes after each meeting. Even though the Federal Reserve does not directly control mortgage rates, Wall Street and banking institutions use the guidelines and advice released from these meetings to shape their own policies. This is the complicated process by which mortgage interest rates are ultimately determined.
The Fair Housing Act was originally created to form protections for racial minorities who were facing housing discrimination. Earlier this year a quiet announcement from the Department of Housing and Urban Development added protections for gay and transgender individuals. The Fair Housing Act has been updated to reflect protection from discrimination against race, color, national origin, religion, familial status, disability and sex, sexual identity, and sexual orientation.