FOMC will hold last meeting of 2015 in mid-December
The November jobs report was released Friday with positive results: more than 211,000 jobs added to U.S. payrolls. This news was welcomed by Federal Reserve Chief Janet Yellen, bolstering the Fed's case for raising interest rates.
The Federal Open Market Committee will meet in less than two weeks and is widely expected to endorse the first central bank interest rate increase in nearly a decade. With continued steady job growth, modest wage gains and more personal wealth, Fed officials have finally been moving closer to raising rates.
However, don't panic: The first move to lift rates should be gradual, rising by only 0.25 percent initially. The idea is to ease into a slow, gentle shift back into rate territory above zero. Fed officials will continue monitoring economic data each month, looking especially at inflation rates. An inflation rate of 2 percent is targeted, ideally, but has remained stubbornly low.
How will these changes affect mortgage rates? They are loosely tied to the central bank's interest rates but are not guaranteed to mirror each other exactly. Some modest rate gains can be expected but will continue fluctuating based on market trends from day to day. If are in a position to refinance or buy a new home, don't hesitate to see what you may be eligible for by contacting a Vertex loan officer at 877-939-0339.
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