The Federal Reserve Bank kept the Fed Funds Rate at 2% for the third straight meeting. Earlier in the week, the Personal Consumption Expenditure data indicated that inflation climbed 0.8% overall in June, which is the highest inflation jump in 27 years. In addition, the report indicated that inflation now sits at 2.3%–above the Fed's desired range of 1-2%.
Even though the Fed left interest rates unchanged, inflation obviously remains a concern and the recent rise may lead to an interest rate hike by the Fed in the near future.
What Does This Mean To You?
Many experts believe the housing market is nearing the bottom and may even be set to bounce back up. For now, home prices remain low, and interest rates are still very attractive.
If you've been weighing your options and waiting to see how things shake out, this is the ideal time to act–since interest rates will probably rise if inflation remains an issue or if the economy starts to show signs of improvement.
