The Federal Open Market Committee met this week and as anticipated, left interest rates alone. Mortgage rates had been dropping in September until the past week or so. Â In the past week, they have started to trend upward slightly. The Fed’s comments were basically that they felt job gains have remained solid along with unemployment numbers staying low. Household spending has been expanding at a moderate rate. All of this information allowed the Fed to keep from increasing rates.
They are watching inflation and if it increases too much, they will increase rates. At this point, if the Fed decides to raise interest rates, it will most likely be in December. If there are changes in the economy, that may change however the Fed Chairman tends to make small changes and gives notice before doing so. Â There was wording that a rate increase was still a possibility and that did cause the Treasury to jump after the meeting.
The long term forecast for the federal funds rate was actually lowered from 3.0% in June to 2.8%. This also leads investors to believe there won’t be a rate increase until possibly December, if at all.
Overall, mortgage rates have been steady and still much lower than many expected them to be at this time. Â With rates around 4% depending on your situation, it is a great time to look at buying a home – or even refinancing your current mortgage.
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
