Fed Shifts Gears May Not Push Interest Rates Much Higher

Fed Shifts Gears May Not Push Interest Rates Much Higher

WASHINGTON – Nov. 29, 2018 – Federal Reserve Chairman Jerome Powell ignited a market rally yesterday by saying interest rates are "just below" broad estimates of a level considered neutral – a setting designed to neither speed nor slow economic growth.

Investors welcomed his remarks because they appeared to retreat from a comment he made in early October describing the Fed's benchmark rate as a "long way" from a neutral level. For some listeners, that statement implied that Powell planned to keep raising rates for a while.

However, his remarks Wednesday appeared to suggest to this audience that he might stop sooner or move more slowly.

Powell did not provide any more guidance on the likely path for rates, and he noted they remain low by historical standards. In addition, he offered nothing to dispel market expectations of another rate increase at the Fed's policy meeting on Dec. 18-19.

For homebuyers, the Fed's interest rate increases directly affect the rate charge on adjustable rate mortgages. The impact on fixed-rate mortgages is less reliable, but they also tend to go up generally as short-term rates increase.

A Fed slowdown in rate increases could bring some new stability to the mortgage market going forward.

Source: Wall Street Journal (11/29/18) Timiraos, Nick


Kevin Berman Headshot
Author:
Phone: 954-471-8120
Dated: November 30th 2018
Views: 51
About Kevin: REAL ESTATE BROKER & MILLION DOLLAR GUILD MEMBER members are specialists who have certified success...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

2019 Portability -
Veterans To Get Their Own Tiny Homes In Mulberry Florida - https://www.heraldtribune.com/news
HOLIDAY SAFETY TIPS - Use decorations made of fire
FHA Loan Limits Increased For 2019 - WASHINGTON – Dec. 17, 2018 –

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

LUX Florida Home Collection & Bankers Realty Services
1300 Sawgrass Corporate Parkway Suite 130
Sunrise, FL
954-880-3098
877-736-9722

Other Locations