If you’re a home buyer, you may have noticed a spike in mortgage rates this week. It may have you thinking you need to buy sooner than later because rates are going to go up more. After the election’s surprising results, rates did take a slight upturn (from 3.57 percent to 3.94 percent). But, as the Associated Press (AP) reported, don’t get carried away because things will soon settle down. In fact, rates are pretty much where they were this time last year.
The Federal Open Market Committee (FOMC) led by Federal Reserve chairwoman Janet Yellen met Tuesday and Wednesday, March 15-16, to make its recommendation on fund rates.
After looking at the economy (and jobs in particular) in US and global markets, the board determined to “maintain the target range for the federal funds rate at 1/4 to 1/2 percent.” What does that mean for home buyers?