As expected, the Fed increased the Funds rate by 0.25% moments ago.  The markets were anticipating this move by the Fed and, as I write this post, I’m not seeing any significant rate changes to mortgage interest rates. The rates were already “baked in the cake”. Had the Fed decided to increase rates beyond 0.25% or not to take action, we would potentially be being seeing a reaction with the bond market which would be reflected in mortgage interest rates. [Read more…]

In Janet Yellen’s last meeting as the Fed Chair, the FOMC has increased the Fed Funds rate by 0.25% to 1.50%. From the press release:

“Information received since the Federal Open Market Committee met in November indicates that the labor market has continued to strengthen and that economic activity has been rising at a solid rate. Averaging through hurricane-related fluctuations, job gains have been solid, and the unemployment rate declined further. Household spending has been expanding at a moderate rate, and growth in business fixed investment has picked up in recent quarters. On a 12-month basis, both overall inflation and inflation for items other than food and energy have declined this year and are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.”

The Fed states it’s likely there will be additional increases to the Funds Rate next year. [Read more…]