Stabilizing Market Causes Fed to Hold Rate
Mortgage News from Quicken Loans
The Federal Open Market Committee (FOMC, Fed) decided for a fifth consecutive time to maintain the Fed Funds Rate, the overnight rate at which banks lend to each other, at 5.25 percent. This decision reflects further evidence that the housing market is showing signs of stabilization. This decision impacts consumers with adjustable rate mortgages, home equity lines of credit and credit cards. The Fed meets eight times a year and is scheduled to reconvene on March 21, 2007.
"The Fed's decision to maintain current rates for the fifth consecutive time comes as no surprise," said Bob Walters, chief economist for Quicken Loans. "Today's announcement is an additional sign that the Fed will continue to be vigilant in monitoring inflation. By maintaining the rate, the Fed is hoping to prevent increasing interest rates, while boosting the housing market outlook and avoiding a possible economic stall."
This article is reprinted by permission from Quicken Loans © 2007 Quicken Loans Inc. All rights reserved.
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