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Interest Rates Fall as Economic Expectations Normalize

With so much happening in the stock and housing market the last few months, interest rates have been a bit unpredictable. As of February 9, the rates for a 30-year fixed mortgage fell to 4.01%, which is three basis points lower than last week, but still higher than last month’s average of 3.90%.

The Federal Reserve

Although the Federal Reserve raised its interest rates in December of 2016, signifying an anticipated turning point in the economy, the Fed voted unanimously to avoid yet another increase that could have taken effect this month. Although the economy is certainly improving – as is evident with the record-breaking Dow Jones Industrial Average that surpassed 20,000 points for the first time in history last month – many experts still aren’t certain when it comes to the future of the economy, and the Fed is taking a “wait-and-see” approach. This is undoubtedly the best possible choice to make right now – at least until things stabilize further. read more

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