So, do two pauses in a row signal an end to Fed rate increases? Though the headline inflation reading in September clocked in at 3.7%-well below the 9.1% peak in June 2022-it remains above the Fed’s 2% target. Over the past year and a half, mortgage rates have skyrocketed to their highest levels in decades as still-high inflation and the Fed’s aggressive actions to tame it continue to pummel the housing market. A basis point is one-hundredth of one percentage point. This is the second consecutive meeting where the Fed did not increase rates following a 25 basis-point hike in June, which lifted the rate range to between 5.25% and 5.5%. The federal funds rate is the overnight borrowing rate for commercial banks and credit unions and indirectly influences mortgage rates. In a widely expected move, the Federal Open Market Committee (FOMC) voted to leave the benchmark federal funds rate unchanged after its latest two-day policy meeting on November 1. Fed Leaves Rates Unchanged as Mortgage Rates Hurtle Towards 8%
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |