What Does The Federal Reserve Statement Mean
Yesterday the Federal Open Market Committee (FOMC) ended it's third meeting of the year and had an immediate release where they kept the Fed Funds Rate unchanged. The vote among the FOMC was unanimous at 10 – 0 to keep the rate unchanged.
There was notes mentioned in the brief press release, the FOMC noted that the economy is recovering at a moderate pace with labor markets also improving and household spending continues to improve but the housing sector continues to be “depressed”. What does all of this language mean? Simply contact your loan officer and have them explain the trends and volatility in the interest rates right now so you can make an informed decision regarding your interest rate.
The FOMC mentions inflation and also notes that it's expected. Additionally the FOMC will keep it's $600 billion bond market support package (QE2). The language in the notes from the meeting that were released seem to suggest that there maybe another support package created at the end of the 2nd quarter this year if they think the economy still needs additional support.
The new information didn't cause a change in interest rates like many anticipated it would depending on the language. Interest rates continue to remain volatile and anyone looking to purchase or refinance a home this year would benefit from visiting with a loan officer to make an informed decision.