The economy added 148,000 jobs in December, but fell short of expectations. Global interest rates, including mortgage rates, moved higher. Wages also increased, a positive indication for home prices and purchase activity.
As we look forward to the new year and where interest rates may be headed, it’s important to remember that each of the last few years were billed as the year rates were finally going to soar higher.
The Federal Open Market Committee announced on Wednesday that it will increase the federal funds rate by 25 basis points to a range between 1.25% and 1.5%. This marks the third increase of 2017, with three more rate hikes expected in 2018.
Next year’s housing market is shaping up to be an active one after the Federal Housing Finance Agency (FHFA) announced higher conforming loan limits on November 28.
The U.S. Bureau of Labor Statistics released its October jobs report on Friday, revealing an increase of 261,000 jobs.
The Federal Reserve met last Wednesday to decide the fate of interest rates and as expected, decided against an increase.
The 10-year Treasury posted yearly lows recently and mortgage rates followed suit.
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