A recent Fed statement that was released on Wednesday, May 3rd reported little changes. During Fed meetings, interest rates are discussed and a decision is made on whether to raise or lower those rates. The most recent decision kept rates stable, which is good news for buyers. A lack of rate increases means that now is a great time to buy – the next meeting could bring about a decision to raise mortgage rates! A report from the Economic Observer described the recent Fed statement in more detail:
“There were no significant surprises in Wednesday’s Fed statement. The economic data released over the past week was roughly neutral. As a result, mortgage rates ended the week with little change.
As expected, the Fed made no change in the federal funds rate. Of note, the statement retained the same language regarding its policy for maintaining the Fed’s massive holdings of Treasuries and mortgage-backed securities (MBS) at their current levels. The statement described the upside and downside risks to the economy as “roughly balanced,” and it suggested that the weakness earlier this year was “likely to be transitory.” Following the meeting, investor expectations for a rate hike in June remain near 70%. ”