title
August 2017   Volume 43, Number 8      
 

1

Fed Announces Third Rate Hike in 7 Months

As anticipated, the Federal Reserve implemented a quarter-point federal funds rate hike in June, increasing its benchmark target to between 1 percent and 1.25. The rate hike was made “in view of realized and expected labor market conditions and inflation,” the Federal Open Market Committee said.

The decision marks the fifth rate hike since December 2015, when the Fed raised rates after an eight-year hiatus. In March, the Fed governors voted to raise interest rates by 0.25 percent, to a range of 0.75 percent to 1.00 percent, citing an improving labor market and inflation below 2 percent.

These factors have continued into the second quarter of 2017 with unemployment at 4.3 percent and “on trend to fall to 3 percent-something by year-end,” according to Lou Barnes, mortgage broker and writer with Inman.

The Fed sets the rate for the overnight exchange of money by banks; governors adjust the rate to help curb inflation or stimulate growth, depending on their assessment of what would be best for the economy. Although this rate is not the same thing as the mortgage interest rate that buyers pay when they take out a loan on a home, movement of the Fed rate — up or down — can put pressure on mortgage interest rates, which frequently follow the lead of the 10-year Treasury note, also known as the “long bond.”

[return to top]

 

 

 

 

In this issue:

The 10 Fastest Growing Cities in the U.S.

3 Million First-time Homebuyers Shut Out of Home Market in Past Decade

America’s Hottest Real Estate Markets: May 2017

Home Prices Are Increasing, But Mortgages Are Still Cheap

Fed Announces Third Rate Hike in 7 Months

Industrial Real Estate Development Reaches 10 Year High

Real Estate Companies Are Moving to the Cloud

Mortgage Applications Down 12 Percent Since 2016

Why More Millennials Are Finally Buying Real Estate

Why More Real Estate Firms Are Now Offering Mortgages

 


The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. SmartsPro Marketing and The Insurance 411 do not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher's permission. All rights reserved. ©2017 The Insurance 411. Tel. 877-762-7877. theinsurance411.com