Breaking News: Federal Reserve Assessment

The Federal Reserve upgraded its assessment of the U.S. economy today, but decided to skip another interest rate increase for now.

In a widely expected move, the central bank's policymaking Federal Open Market Committee voted unanimously to keep the target range for its benchmark rate at 1.75 percent to 2 percent.

However, the committee is widely expected to approve an increase at the September meeting, and a tweak in the language from the post-meeting statement could be a nod toward more monetary policy normalization.

The statement said the labor market has "continued to strengthen," language consistent with the June meeting.

Breaking News

Breaking News: The Taper Clock is Ticking…

 

The Federal Open Market Committee (FOMC), that regulates the interest rates that banks pay for money, just announced that they are not going to change interest rates currently (good news). They went on to say, however, that they are going to accelerate their timeframe for reducing that amount of mortgage backed securities that they are buying each month starting October instead of December (bad news for rates).  12 out of 16 FOMC members predict a rate hike this year. 

 

This is basically what the markets were expecting with the exception of the acceleration of tapering.  This is negative for pricing. 

 

This news should create a sense of urgency for the public when they watch the news this evening.  The clock is ticking…get your buyers to us to get preapproved right away.

Call The Easterbrook Team Today

916.850.6050