At the FOMC’s third meeting of the year, the Committee voted to maintain the current federal funds target rate of 0.75 to 1.0 percent. Fed officials came to this conclusion after meeting in Washington, D.C. for two days this week. Despite some economic growth, overall markets did not perform as well as expected. Still, the FOMC laid the path for future rate hikes within their statement. Find out more on exactly what happened at the meeting and what to expect with interest rates in the near-term.
When will the Fed raise rates again?
There’s no published calendar as to when the next rate hike will occur. Many financial analysts predict the next raise to happen at the FOMC’s June meeting, but we’ve already seen meetings where a raise was expected and didn’t end up happening. Fed officials review economic data on an ongoing basis to determine the strength of the overall economy, and use that information to decide whether or not the markets could handle an increase in rates. This month, the FOMC statement noted that “growth in economic activity slowed.”
The statement cited job gains and unemployment as “solid,” although slower than expected. By the same token, “household spending rose only modestly.” However, the Fed expects these slows to be temporary. The statement also said that gradual adjustments to the FOMC’s monetary policy will contribute to economic expansion at a “moderate pace.” This implies that they do indeed expect to continue rate hikes in the future, although they don’t explicitly say when.
What should you expect during spring real estate season?
If you’re planning on buying or selling your home this spring or summer, you might be wondering whether or not you should be concerned about mortgage rates. After all, if you’re a buyer, higher interest rates mean higher monthly payments, and if you’re a seller they impact the amount that potential buyers can qualify for. For the last several weeks interest rates have stayed steady, but with rates projected to continue on an upward trajectory, it’s a great time to sit down with your mortgage banker and discuss your future goals. Whether you want to purchase a home in California or refinance your current mortgage, we can help you evaluate all your options and find the home loan that works best for you.
Find out today’s mortgage rates – talk to one of our mortgage bankers.