Today the Federal Open Market Committee or FOMC voted on the FED funds rate (the rate at which banks lend money to each other over night) and released it’s thoughts on the state of the economy moving forward. The FOMC voted to keep the target range for the federal funds rate at 0% to 1/4% with only Federal Reserve President dissenting.
The FED funds rate at been at its current level since late 2008.
The FED on the Economy
The FOMC stated that since it last met in March, the economy has been expanding moderately. They also believe that labor market conditions have improved in recent months while the unemployment rate has declined, while remaining elevated. The FOMC sees household spending and business fixed investment continuing to advance but believe the housing sector is still depressed despite some signs of improvement.
The FOMC also referenced mentioned that, “Strains in global financial markets continue to pose significant downside risks to the economic outlook.” This means the FOMC believes that the debt insolvency woes of Europe, specifically Greece, Spain and Italy, continue to pose a risk to the US Economy.
From the FOMC Press Release:
To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.
How Did the FOMC Meeting Affect Mortgage Rates Today?
Today was volatile with mortgage rates mixed. The problem is that mortgage rates can change many times per day, especially on volatile days like today. To get the most accurate mortgage rate quote, please submit a rate request using the form above or call us directly.