The Federal Open Market Committee (FOMC) announced no change on Thursday May 4th. This leaves the Fed Funds Rate (the rate charged between banks overnight on excess reserve fund borrowings) in a range from 0.75% to 1.00% (FOMC Leaves FED Funds Rate Unchanged).
What does this mean for you? With the Trump administration and a slower economy there are bound to be some bumps in the road approaching. With different administration goals, it will be interesting to see what progress the administration aims to make. We are still in a rising rate environment meaning any change to lower rates may be only for a short amount of time. If you are looking to try and close a deal, work quickly with your lenders to secure an interest rate. As the Trump administration continues to set the infrastructure for the government and new policies we can expect a variation in change that can make some parts of the market unpredictable.
Pending home sales have also fallen 1.3% in April according to CNBC television. The good news for sellers, the market will need more listings in order to try and raise the number of pending home sales. What does this mean for you? This means that now is the time to look into selling. If you have been hesitant in the past, you want to get moving on this advantage. Homes for sale are in a lack of supply causing the fall in home sales.
The next meeting will be June 14th. There is an expected change that will be made due to predictions for “2 or 3 more hikes” (FOMC Leaves FED Funds Rate Unchanged). Whether you are looking to buy or sell, now is a good time to make a move.
Johnson, Karen. “FOMC Leaves FED Funds Rate Unchanged.” 4 May 2017. E-mail
Olick, Diana. “Pending Home Sales Drop 1.3% in April as Spring Housing Market Shows Weakness.” CNBC. CNBC, 31 May 2017. Web.