Federal Reserve Chair Janet Yellen said last week in a prepared statement that the U.S. economy should continue to expand over the next few years, allowing the central bank to keep raising interest rates, while also stressing a gradual approach to tightening as the Fed monitors too-low inflation.
With U.S. economy growing at a steady pace, Yellen’s Fed is gradually pulling back from crisis-era stimulus. It raised interest rates in June for a second time this year and forecast another hike in 2017.
The U.S. expansion is in its ninth year and continues to create jobs without much inflation. Unemployment was 4.4% in June and employers have added 187,000 jobs a month on average over the past 12 months. But stronger demand for labor hasn’t fed into higher wages.
Mortgage rates continue to hold in the low 4%'s for conventional mortgages and 4% or lower for RD, VA and FHA mortgages.
Information courtesy of Bill Holmes with Front Street Mortgage