The much anticipated announcement from the Federal Reserve regarding whether or not they plan to increase interest rates was made this previous week. The Federal Reserve has decided not to increase interest rates and Janet Yellen went out of her way to make it incredibly clear that she plans to be highly accommodating with economic policy as the economy fights its way back to prosperity. The primary reasons the Federal Reserve noted for this decision was the slow start to the economy in Q1 of 2015 as well as sluggish job growth throughout the country. Right now an increase in interest rates would not be justified. Rates slightly improved this past week, and as the market continues to digest this news analysts project rates to slowly improve in the coming weeks.
However, so far this week rates have reversed back to where they were before the Fed Announcement due to Greece “possibly” finding a solutionn with their creditors. Investors have found this as positive news and rates have increased this week thus far.
Finally, GDP comes out on Wednesday and will definitely move rates one way or the other depending on how positive or negative the numbers look. Stay tuned!
Chris Hauber | Mortgage Loan Originator
Hallmark Home Mortgage, LLC
Phone: 303-347-7577 Fax: 303-675-3482