Fed Holds Rates Steady, But Takes Long Look at Housing
Mortgage News from Quicken Loans
<P>For the sixth consecutive time, the Federal Open Market Committee decided to maintain the Fed Funds Rate at 5.25%. The Fed Funds Rate is the overnight rate at which banks lend to each other. It also influences short-term interest rates, which affects adjustable rate mortgages and home equity lines of credit.</P> <P>This decision was what was generally expected in financial circles, according Bob Walters, chief economist of Quicken Loans, the nation's largest online lender.</P> <P>As was widely anticipated, the Federal Reserve today left the Fed Funds rate unchanged for the sixth consecutive time at 5.25 percent. "The markets also got what they were expecting in terms of the Fed's assertion that inflation remains a concern," says Walters. "By introducing language expressing concerns about the housing market, the Fed has has shown that this important sector of the economy is now receiving a high level of focus. For now, it's clear the Fed views inflation as a greater threat to the economy than current housing woes. The immediate reaction after the announcement by the bond market indicates the market views this positively and interst rates have fallen slightly."</P>This article is reprinted by permission from Quicken Loans © 2007 Quicken Loans Inc. All rights reserved.
Find the most up to date real estate news!
Find more mortgage related news! View all our mortgage news.
