The Fed meets every six to seven weeks to discuss monetary policy with regional representatives called Fed presidents. They gather with Fed chairwoman Janet Yellen to discuss and vote on whether to raise or lower rates, or keep them the same.
On March 16, the Fed met and took a softer tone on raising rates this year.
After a historic interest rate rise in December — the first in nine years — the Federal Reserve initially estimated that it would raise the federal fund rate four more times in 2016 because it thought that the economy would be strong enough to warrant the increases.
On March 16 though, the Fed stated that it would be backing off of that prediction, citing that the global economy was potentially going to be a drag on our economy.
These comments sparked a rally in the stock market and also brought mortgage and treasury rates down.
Mortgage and treasury rates trade on a day-to-day basis just like stocks, moving based upon economic data. As of mid-March, mortgages rate stood at 3.75 for a 30-year, 3.625 for a 20-year and 3.125 for 15-year.
The market should remain neutral for the next 60 days, trading in a fairly narrow range. With rates at near all-time lows, this is a great time to buy or refinance a house.
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