YELLEN: Rate hikes are coming this year

Just another reason not to wait to purchase a home: "...if the economy continues to improve as I expect, I think it will be appropriate at some point this year to take the initial step to raise the federal funds rate target and begin the process of normalizing monetary policy." - Federal Reserve Chair Janet Yellen

YELLEN: Rate hikes are coming this year


  • Myles UDland - MAY 22, 2015, 1:01 PM

Federal Reserve chair Janet Yellen said it will be appropriate for the Fed to raise rates at some point this year. 
Yellen's comments were delivered on Friday before the Greater Providence Chamber of Commerce. 
Here's the key peel from Yellen's speech:
Given this economic outlook and the attendant uncertainty, how is monetary policy likely to evolve over the next few years? Because of the substantial lags in the effects of monetary policy on the economy, we must make policy in a forward-looking manner. Delaying action to tighten monetary policy until employment and inflation are already back to our objectives would risk overheating the economy.
For this reason, if the economy continues to improve as I expect, I think it will be appropriate at some point this year to take the initial step to raise the federal funds rate target and begin the process of normalizing monetary policy. To support taking this step, however, I will need to see continued improvement in labor market conditions, and I will need to be reasonably confident that inflation will move back to 2 percent over the medium term.
Yellen emphasized, however, that when the Fed begins raising rates it will be a gradual process, and Yellen said it will likely be "several years" before the Fed gets interest rates to where it would expect rates to be over the long term.
Read more: http://www.businessinsider.com/janet-yellen-us-economic-outlook-speech-may-22-2015-5#ixzz3b0lUfge8

Popular posts from this blog

Millennials Prefer Single-Family Homes Too

Millennials Prefer Single-Family Homes Too DAILY REAL ESTATE NEWS | MONDAY, JULY 06, 2015 A growing body of research is discrediting what was previously assumed about millennials' taste for real estate. Many housing analysts said this generation of young adults preferred small, urban walkable corridors, but recent studies are revealing a different preference.  Millennials, just like previous generations, are showing a strong preference for single-family homes, according to a new Housing Insights report released by Fannie Mae's Economic & Strategic Research Group.  Researchers examined the rates at which young households are occupying single-family homes today and also compared it to young adults' preferences prior to the housing crash.  "The analysis reveals that the likelihood of a millennial household occupying a single-family home today is down somewhat from that of young adults at the peak of the housing boom, but is no different than it was for...
Read more

Loan Demand Takes Sudden Leap From Home Buyers

Image
Loan Demand Takes Sudden Leap From Home Buyers July 11, 2018 © REALTOR® Magazine The number of homes for sale is growing in some markets and that may be the main factor behind the latest rise in mortgage applications, economists say. Mortgage applications for both home purchases and refinancings increased 2.5 percent last week on a seasonally adjusted basis, the Mortgage Bankers Association reported Wednesday. The rise was fueled entirely by an uptick in home purchase applications. Mortgage applications for home purchases surged 7 percent in the week and are now 8 percent higher than a year ago, the MBA reports. Abounding housing shortages have mostly kept a lid on any notable increases in home sales this summer, but that gradually may be changing. “Even though inventories continue to decline, they are doing so at a slower pace,” says Danielle Hale, chief economist at realtor.com®. “In other words, while buyers continue to see fewer homes available for ...
Read more

10 Fastest Appreciating Housing Markets in the U.S.

10 Fastest Appreciating Housing Markets in the U.S. Residential home prices are set to appreciate at 4.4 percent nationally, over the next 12 months, according to  Veros Real Estate Solutions'  (Veros) VeroFORECAST that was released on Tuesday. However, housing markets out West are likely to see a much faster appreciation that the rest of the country, the forecast predicted. The latest quarterly forecast covers the 12 months from June 1, 2018, to June 1, 2019, and integrates data from 1,005 counties, 354 metropolitan statistical areas (MSAs), and 13,877 ZIP codes covering 82 percent of the U.S. population. The forecast for Q2 2018 projected that the 10 highest-appreciating markets were concentrated in five states in the West. The forecast also found ten markets that were projected to see a slight depreciation in home values over the next 12 months. All these markets were in the East and South, Veros said. “Washington State and Nevada occupy six of the ten highest-appre...
Read more