Interest Rates May Remain Low Through 2017
On February 8, 2017, St. Louis Federal Reserve Bank President James Bullard commented that interest rates can remain low through 2017. His comment bucked recent market consensus that Federal Reserve might raise interest rates three times in 2017. Bullard felt there was only need for one rate hike, probably during the Fed meeting in March.
If the Federal Reserve consents with Bullard’s view, it could be a welcome news to the real estate market and potential home buyers. As mortgage interest rates have been increasing steadily in the past few months, the trend has pushed number of buyers/borrowers to the sideline.