The Federal Reserve said Wednesday it was keeping its key interest rate at 5.25% — the first time it has kept the rate steady in more than a year. The fed raised interest rates 10 consecutive times from March 2022 to this May. Inflation appears to be finally easing, and the Fed wants to assess whether it has already raised rates high enough to tame price increases.
Source: NBC News
Yet the Fed also signaled rates could still go higher if inflation proves sticky.”Inflation remains elevated,” the Fed’s Open Market Committee said Wednesday in a statement, adding it was prepared to adjust rates “if risks emerge that could impede the attainment of the Committee’s goal” of reaching a 2% inflation rate.
Mortgage Rates Continue to Come Down
Mortgage rates decreased slightly this week in anticipation of the pause in rate hikes by the Federal Reserve. As inflation continues to decelerate, economic growth is slowing and the tightening cycle of monetary policy is reaching its apex, which means mortgage rates are expected to decrease later this year and into next.
