Great news for our economy and our real estate market. The Federal Reserve has indicated that it will not raise interest rates in the near future. The Federal Reserve said that the economy is strong but that they will be “patient” before any future increases. The Stock Market answered with the Dow up 434.50 on the day.
Federal Reserve chairwoman Janet L. Yellen, stated Friday that the Fed was likely to raise the benchmark interest rate this month. This increased rate is coming sooner than expected. The last benchmark rate increase occurred in December. The rate was increased from .5 percent to .75 percent.
With healthy unemployment rates at 4.8 percent the Fed considers inflation rising back to 2 percent to be considered optimal. Ms. Yellen expects further increases in upcoming years to maintain a neutral stance.
Information provided by the New York Times. You can read the entire article here.
For the first time since the economy fell 7 years ago, the Federal Reserve is considering raising interest rates. The move to raise interest rates could come as early as June. Those looking to borrow money for a mortgage still have the opportunity to take advantage of the extremely low rates!
Some are surprised by the June date for rate increases. Previously the Federal Reserve had indicated rates would increase much sooner than this spring. The Federal Reserve will remain patient when deciding to raise the rates waiting for an improvement in the labor market. With the drop in the market today, the Federal Reserve may decide not to increase rates after all.
For more information on the Federal Reserve interest rate news, you can view the entire article via the NY Times here.
With the possibility of a rate increase in the near future, now is the time for those looking for property to buy so take advantage. Pending listings are at their highest this year with 83 properties pending from March 7 – March 13! The Hansen Ohana is a full service real estate company ready to help you reach your property dreams! Contact us today!