Fed leaves rates alone, but hikes coming
The Federal Reserve voted on Wednesday to leave its benchmark interest rate unchanged, but it continues to leave the door open to future increases this year. The Fed’s benchmark rate will remain in the range of 1.25 to 1.5 percent, which is low by historical standards. Fed committee members said that by leaving the rate unchanged, they hope the low rates will help support broader job growth and stronger inflation.
Lawrence Yun, chief economist of the National Association of REALTORS, predicts the Fed will still do three short-term rate hikes later this year—and that will have an impact on mortgage rates for home shoppers. Yun predicts that mortgage rates will reach 4.5 percent by the second half of the year.