This Week in Real Estate 7-31-2015 - Feds to keep rates steady

Most likely, Mortgage Interest rates to remain stable.

This week the bullets from notes from the Federal Reserve:

·         Economic activity has been expanding moderately in recent months

·         Growth in household spending has been moderate

·         Business fixed investment and net exports stayed soft.

·         The labor market continued to improve, with solid job gains and declining unemployment.

·         Inflation continued to run below the Committee's longer-run objective

So actions to be taken by the Federal Reserve:

·         The Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate.

·         In determining how long to maintain this target range, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation.

·         The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term (6-12 months)

We can all thank the Chinese Stock Market and the European Debt Crisis for keeping our interest rated lower. The Federal Reserve had stated a target date for interest rate increases in June last fall, then September this spring. Now they are using a vague statement of time which usually means a year or longer. Rates have been creeping up in the last 6 months, but expect to see them hold in their current range for the next few months. (4-4.5%)