The Federal Reserve’s July meeting minutes stated that the policymakers think that the U.S. economy is now strong enough to raise these interest rates. What the minutes didn’t inform people of is when to expect these interest rates to go up. With that said, there have been many predictions to suggest that these interest rates are on track to start going up in the spring of 2015. There has not been any increase in the Federal Funds Rate since June 2006; this would be the first time in 8 years that people would see an increase in these interest rates, and some think the United States’ economy is not ready for this.
Although the majority of the policymakers were in favor of increased interest rates, there were some that did not agree. John Makin, a conservative economist at the American Enterprise Institute, stated his opinion that these rates should continue to be kept low for now. Makin argued that although there was a 4% growth rate in the U.S. economy in the second quarter of this year, the first quarter showed only a .95% growth rate. If interest rates were to be raised now, that 4% growth rate in the U.S. economy could be very fleeting.
The minutes from the U.S. Federal Reserve’s July meeting, coupled with the Bank of International Settlements annual report, which was released in June, propose that some of the economic issues in the U.S. are not being addressed. Many of the individuals at the meeting were concerned that Americans are spending too little and saving too much. This combination is suggesting that the low interest rates may not be in the U.S. economy’s best interest. Many factors are contributing to the slow recovery of the housing market; some of these factors include low income, student debt, and the fact that it is difficult for first-time home buyers to get mortgage credit. With all these factors in mind, there has never been a better time, and there might never be a better time, for the American people to lock in low mortgage rates while they still can.
Call Hunter Lending if you are considering locking in today’s low Denver Mortgage Rate by refinancing or using the opportunity to buy additional property.
