FOMC Commentary from MBA's Mike Fratantoni

The following is MBA SVP and Chief Economist Mike Fratantoni's commentary following the Federal Reserve's FOMC statement released this afternoon on monetary policy and the economy:

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"The FOMC cut rates by another 25 basis points at its November meeting, noting that risks to its inflation and employment goals are 'roughly in balance.'

"Financial markets fully anticipated this rate cut, and the FOMC's statement provides no new information regarding the likelihood of future cuts. The big impact on rates this week was clearly the election. As results rolled in, longer-term rates jumped higher. Investors expect somewhat stronger economic growth, higher inflation, and larger deficits.

"MBA expects that mortgage rates will remain within a fairly narrow range over the next year, with mortgage rates moving higher on signs of economic strength and more stimulative fiscal or monetary policy, or lower if it's the opposite. Housing markets continue to be primed for a stronger spring homebuying season, boosted by more housing supply and slower home-price growth."