It is nearly inevitable that the Federal Reserve will increase short term interest rates by .25% at their next meeting in mid December. Janet Yellen, Federal Reserve chairperson, said when they decide to raise rates, it will be a testament to how far our economy has recovered from the effects of the financial crisis and the recession. She also reiterated that the Fed isn’t going to have a repeat of what they did 10 years ago when they lowered rates each quarter. Instead they are going to take a very conservative approach to raising rates and assess the impact before additional increases are put in place. We expect mortgage rates to increase slightly in anticipation of this potential increase.
About Cathy Robin
Cathy Robin is with American Mortgage & Equity Consultants, Inc., License # 336090. She may be reached at: 952-449-7144.