Tag: interest rates

Fed Expects Interest Rates to Hold Near Zero Through 2022

Filed in Economics by on June 10, 2020 0 Comments
Fed Expects Interest Rates to Hold Near Zero Through 2022

The Federal Reserve held the federal funds rate at the current 0% to 0.25% range and said it intends to keep its benchmark rate near zero through 2022 as the central bank continues to deploy policy tools to underwrite an emerging recovery for the U.S. economy from the COVID-19 pandemic. 

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Fed Cuts Rates by Half a Percentage Point

Filed in Economics by on March 3, 2020 0 Comments
Fed Cuts Rates by Half a Percentage Point

Reacting to growing economic concerns stemming from the coronavirus, the Federal Reserve Federal Open Market Committee today reduced the target range for the federal funds rate by 50 basis points, lowering the target to 1% to 1.25%. The target rate is now the lowest since late 2017, completely unwinding the rate hikes of 2018.

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$1,000 Makes a Big Difference in Housing Affordability

Filed in Economics, Housing Affordability by on January 29, 2020 0 Comments
$1,000 Makes a Big Difference in Housing Affordability

A recent study from NAHB determined that for every $1,000 increase in the cost of today’s median U.S. home price, 158,857 American households are “priced out” and would no longer be able to afford it.

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Why Lower Interest Rates are Not Boosting the Housing Market

Filed in Economics, Housing Affordability, Housing Finance by on August 8, 2019 3 Comments
Why Lower Interest Rates are Not Boosting the Housing Market

Recent jolts to the economy stemming in part from an intensified trade war with China have worried markets and resulted in a significant decline in interest rates as investors have shifted from equity to bonds. Lower interest rates present an opportunity for the housing market, which has failed so far to respond energetically to this positive development due to prior housing affordability headwinds.

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Fed Rate Cut Good for Housing

Filed in Economics, Housing Finance by on July 31, 2019 0 Comments
Fed Rate Cut Good for Housing

In a policy change widely expected and good for housing and home building, the Federal Reserve today reduced its key, short-term federal funds rate by 25 basis points to a top rate of 2.25%. The housing sector continues to face affordability headwinds, and today’s action by the Fed will help by reducing borrowing costs.

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Economic Uncertainty Curbs Housing Growth

Filed in Economics by on July 3, 2019 0 Comments
Economic Uncertainty Curbs Housing Growth

In his recent overview of current housing market conditions, NAHB Chief Economist Robert Dietz illustrates how lower interest rates alone are not sufficient to tackle current housing affordability headwinds.

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Fed Action Bodes Well for Mortgage Rates

Filed in Economics, Housing Finance by on March 25, 2019 0 Comments
Fed Action Bodes Well for Mortgage Rates

The Federal Reserve’s decision last week to hold short-term interest rates steady, along with two other key announcements by the central bank, should reduce upward pressure on mortgage interest rates for the foreseeable future.

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Fed Holds Interest Rates Steady; What Does This Mean for Housing?

Filed in Economics by on January 30, 2019 1 Comment
Fed Holds Interest Rates Steady; What Does This Mean for Housing?

The Federal Reserve ended its two-day meeting of its policymaking committee by announcing it would hold short-term interest rates steady and signaling that it will carefully evaluate future economic conditions before considering another rate hike. NAHB Chief Economist Robert Dietz provides an analysis of the Fed’s decision and the possible impact on the housing market.

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What the Fed Rate Hike Means for Housing

Filed in Economics by on December 20, 2018 0 Comments
What the Fed Rate Hike Means for Housing

Housing affordability last quarter was at a 10-year low, and it appears that conditions at the start of 2019 aren’t likely to improve much.

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