Hot off the Press: Interest Rate News for Homebuyers and Sellers!

The Federal Reserve has made a move that will have an impact on the economy and your wallet. On Wednesday, the Fed raised the target range for its benchmark interest rate by 0.25%, taking it to 4.75%-5%, the highest since October 2007. The Fed also released updated economic forecasts in its Summary of Economic Projections, which included its "dot plot" that maps out policymakers' expectations for where interest rates could be headed in the future.

According to the dot plot, benchmark interest rates are expected to continue rising slightly in 2023, peaking at 5.1%, on par with the Fed's previous December projection. However, some officials see rates going as high as 6%. The good news is that no officials see rate cuts this year, although they do see rates coming down to 4.3% in 2024, slightly higher than December's outlook.

What's more, the Fed has signaled that it will end its aggressive rate-hiking cycle. The policy statement said, "The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time."

The SEP indicates the Federal Reserve sees core inflation peaking at 3.6% this year, which is slightly higher than December's projection, before cooling to 2.6% next year and 2.1% in 2025. Officials see unemployment rising to 4.5% this year, below the previous 4.6% forecast, but expect it to tick slightly higher to 4.6% next year and remain at that level through 2025.

The Fed also sees below-average economic growth, with the economy barely growing next year at just 0.4% (down from December's 0.5% projection) before picking up slightly in the following years. U.S. stocks were marginally higher following the announcement with the 10-Year Treasury yield down about 9 basis points to around 3.51%.

This news has implications for anyone who is considering buying or selling a home, so keep an eye on interest rates as they continue to evolve over the coming months.

If you are thinking of Buying or Selling a home, Call, email or text YHSGR Besmatch and start packing!!

Source