…Let’s see… How about a few words from one of my favorite resources?
We dodged another bullet this past week when the Federal Reserve Board kept the Federal Funds Rate (the Overnight Lending Rate) the same, despite three months of chatter in financial markets that the Board had waited too long to raise rates and would do it this month. There were, however, unusually hawkish statements at the Fed Open Market Committee meeting, made by several members of the Board, to the effect that the rate should go up at the December meeting, and that there should be several rate increases in 2017. The economy is clearly recovering, albeit slowly, and the Fed always wants to curb future inflation by raising the Overnight Rate to restrain borrowing.
Mortgage rates, still at historical lows, have always been immediately affected upward when the Federal Funds Rate has been raised. If you intend to buy or refinance, be advised that you could be looking at higher rates very soon.
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