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Did you know that in the 80’s the mortgage rate was 16.6% at one time?
May 4, 2016 /On Wednesday, the Fed voted to maintain the current rate of interest but did signify the possibility of rate hikes later in the year. As such, the federal funds rate will remain in the current range of 0.25-0.5%. In its press release, the Fed indicated a sense of optimism in regards to the presence of improvement in both household incomes and the labor market. Additionally, the Fed noted the housing sector has continued to improve since the beginning of 2016. However, inflation is still below the Fed’s ideal rate of 2%, while consumer spending, investment in the business sector, and net exports are not as strong as they could be. The Fed’s overall consensus is that, while the economy is still showing steady signs of improvement, there are still a few obstacles in the way. As such, the Fed has chosen to keep the federal funds rate unchanged for the time being. The Fed’s next meeting will take place in June, and there is a possibility that we’ll be seeing rate increases by July. At any rate, the Fed hopes to authorize about two rate hikes during the remainder of 2016. How Does This Affect Mortgage Rates? Contrary to a…Read more
