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The Federal Reserve released its June 2011 Federal Open Market Committee meeting minutes Tuesday. It contained no surprises and, as such, mortgage rates in Pennsylvania and New Jersey have idled in the hours since.

The Fed Minutes is published 8 times annually, three weeks after each scheduled Federal Open Market Committee meeting. It’s the official log of the meeting’s conversations and debates.

The Fed Minutes is the lengthier companion piece to the FOMC’s more well-known, post-meeting press release. As compared to the brief-and-focused press release,by comparison, the Fed Minutes are long and detailed.

June’s press release was 458 words long. Its minutes totaled 6,889 words.

The June minutes reveal some interesting perspectives from within the Federal Reserve, too.

• On growth : Economic recovery had been slower than the committee expected
• On housing : The market remains depressed. Foreclosures are “holding back” construction.
• On rates : The Fed Funds Rate should remain low for an “extended” period

In addition, the Federal Reserve discussed whether a new round of economic stimulus was necessary. Committee members agreed that a poor outlook for employment in the medium-term would make this move more likely.

There was little that surprised Wall Street in the June Fed Minutes. This is why market reaction has been muted since its release.

The FOMC meets next August 9. If jobs data continues to weaken between now and then, expect the stimulus chatter to continue. It’s unclear, however, how this would impact mortgage rates.

For now, mortgage rates remain near their all-time lows, and they have much more room to rise than to fall. If you’re shopping for a loan, therefore, the timing is right for a lock.

Check back for our review of the August meetings and get an understanding as to what impact the fed meetings will have you and your situation. The meetings could have impact on the timing of locking an interest rate which would directly impact your monthly housing payment.

Friday morning, at 8:30 AM ET, the Bureau of Labor Statistics releases its June Non-Farm Payrolls report. If you’re currently shopping for a mortgage, or floating a mortgage rate, be prepared. Mortgage rates can change following the monthly report’s release. Often, by a lot. More commonly called “the jobs report“, Non-Farm Payrolls reports on the U.S. workforce by sector, summarizing its findings in terms of total workforce size, and as a national Unemployment Rate. Jobs are considered a keystone in the continuing U.S. economic recovery. More working Americans means: 1. More consumer spending, a boost to businesses 2. More tax collection, a boost to governments 3. More personal savings, a boost to households For June, analysts expect the government to report 80,000 net new jobs created, and no change in the 9.1% Unemployment Rate. Although these figures are slightly below than what can be considered “strong growth”, that’s not what should concern Collingswood rate shoppers. Mortgage markets react to a deviation from estimates more than to the actual results themselves. This is because Wall Street placed bets in advance of the jobs report’s release. If jobs growth tallies more than 80,000, therefore, it signals better news for the economy than what was expected. This will push banks and investors towards equities, and away from bonds — including the mortgage-backed kind. With less demand for mortgage bonds, mortgage rates will rise. Conversely, if jobs growth is less than 80,000, mortgage rates should fall. Mortgage rates remain near their lows for the year, but if the June Non-Farm Payrolls report beats estimates of 80,000 jobs made in June, look for mortgage rates to spike. The safe move is to lock today.

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• Repair/Replacement of roofs, gutters and downspouts
• Repair/Replacement/upgrade of existing HVAC systems
• Repair/Replacement/upgrade of plumbing and electrical systems
• Repair/Replacement of flooring
• Minor renovation, such as kitchens & baths, which do not involve structural repairs
• Painting, both exterior and interior
• Weatherization, including storms windows and doors, insulation, weather stripping, etc...
• Purchase and installation of appliances, including free-standing ranges, refrigerators and microwave ovens
• Septic system and/or well repair or replacement
• Accessibility improvements for persons with disabilities
• Lead-based paint stabilization or abatement of lead-based paint hazards
• Repair/replace/add exterior decks,patios, porches
• Basement finishing and renovation that does not involve structural repairs
• Basement waterproofing
• Window and door replacements and exterior wall re-siding

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The Federal Open Market Committee starts a two-day meeting today, the third of its 8 scheduled meetings this year.

The FOMC is a special, 12-person committee within the Federal Reserve. It’s led by Fed Chairman Ben Bernanke and the group is responsible for voting on our nation’s monetary policy. This includes setting the Fed Funds Rate, the rate at which banks borrow money from each other overnight.

The general public tends to confuse the Fed Funds Rate for “mortgage rates” but, as shown in the chart at top, the two interest rates are very different. There is no direct correlation between the Fed Funds Rate and everyday mortgage rates in Voorhees.

Since 1990, the two benchmark rates have been separated by as much as 5.29 percent, and have been as close as 0.52 percent.

Today, the separation between the Fed Funds Rate and the national average for a standard, 30-year fixed rate mortgage is 4.625 percent. This spread will widen — or shrink — beginning 12:30 PM ET Wednesday. That’s when the FOMC adjourns and releases its public statement to the markets.

According to Wall Street, there’s a 100% chance that the FOMC leaves the Fed Funds Rate in its current “target range” of 0.000-0.250 percent, the same range in which it’s been since December 2008. Depending on the verbiage in the press release, plus the comments of Fed Chairman Ben Bernanke in his scheduled, 2:15 PM ET press briefing, mortgage rates aren’t expected to steady as well.

If the Fed projects higher growth in late-2011/early-2012, or hints at new market stimuli, expect mortgage rates to rise on concerns about inflation. Inflation is bad for mortgage rates, in general.

On the other hand, if the Fed indicates that the economy is slowing down, or that it plans to withdraw its existing, $600 billion bond market stimulus, look for mortgage rates to fall.

It’s hard to be a home buyer in the Barclay area when the Federal Open Market Committee meets. There’s just so much that can change mortgage rates and rising mortgage rates can affect purchasing power in a flash.

In the 6 months since November 2010, home affordability is off 9%.

So, if you’re shopping for mortgages, or just floating a rate, consider getting locked in before the FOMC issues its press release Wednesday. Once the statement hits, mortgage rates could soar.

A lot of Home Owners today have no idea what exactly is covered under their Home Owners Insurance Policy. Most of the time this is a last minute item that they pay for prior to their loan closing. A major misconception about these policies is that almost every repair that is needed is covered. This could not be any further from the truth. It is extremely important for you to have a full understanding about what EXACTLY is covered under your policy so you will have an idea of if you need to purchase any extra insurance to cover you in case any of these life events happen to you and your home. Repairs can be extremely expensive and can set you and your family back financially if you don’t not have the proper insurance. Below I would like to high light some items that you may believe are covered under your existing policy. It would be a great idea to speak to your insurance agent about these items if you have some concern that these life events could happen to you:

• Personal Liability – if a guest or a stranger injures themselves anywhere within your property line you possibly will not have this covered under your blanket policy. This is generally something separate that will need to be added to your existing or new policy to insure that personal liability is covered.
• Basic Wear and Tear – This is very similar to your auto policy. Over time certain area of your home can wear down through nothing more than just time. A home warranty might help you if this is a cause of concern for you.
• Power Surges – There can be several different causes of a power surge in your home but the cause of the surge will determine if your electronic equipment that get damaged by the surge are protect under your existing policy. This is another situation that having a Home Warranty would help.
• Floods – If you live in a FEMA determined flood zone your lender will require you to purchase a Flood Insurance policy. Flood plains can and will change and if you have concern about this you should look in to obtaining a flood policy. Without exception your home owners insurance policy will not cover flood damage and this cost to repair can get VERY expensive
• Acts of Nature – (i.e. Hurricanes, Tornados and Earth Quakes) Acts of nature are not covered under your basic home owners insurance policy. If these are events are likely to happen where you live then it is highly recommended that you look into either other insurance products to protect you or warranties to better protect you and your home.
• Basic Water Damage – Most will assume that if a pipe bursts or a tub or toilet over floors that their home owners insurance will automatically cover the damage. This is not true under most policies. This is generally covered under a Home Warranty but additional coverage for this can be purchased. If no coverage is taken out for water damage, these repairs can get COSTLY.
• Pest Damage – it is not uncommon for pests and or rodents to cause some serious damage to your home. By simply gnawing on your electrical wiring or equipment these rodents can and will cause some serious problems which are costly to repair. This is NOT covered under your home owner’s insurance policy and most home warranties do not cover this. Please inquire about this!.