The Fed Says…Low Rates Forever???

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Filed under: Market Comentary

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Today was another Fed meeting – day 2 of their regularly scheduled meeting. They came out with their announcement. I like to talk about this every time they meet since these announcements shine light on economic factors in our country.

Rates are Staying Low for How Long?!

The Fed was a little more upbeat compared to their last meeting. They expected GDP to be a little better than they initially predicted, which is good for the economy. But the headline of the whole thing is that they kept rates at zero, which was absolutely no surprise.

What continues to surprise me is that they said that rates will be low until at least 2023. So, we have at least another couple of years of this before we can expect to see rates coming up. Of course, if all of a sudden things shifted and started to shape up in ways that no one could predict right now – that could all change at any point.

Unpredictable Times

It’s interesting to observe. I can’t remember a time when the Fed was looking so far ahead and trying to paint a picture of rates staying low for a long time.

Like always, we can’t always predict mortgage interest rates. But it’s a good sign that things will stay down for the foreseeable future.

It’s like always, we’ll have normal undulation where interest rates will roll up and down. But it looks like we will be in a solid interest rate environment for now. So, hold on tight! It looks like housing is going to stay strong for a while.

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