Could Interest Rates Be Headed Up?
August 12, 2009
By Kevin Cafferty
According to the MonitorBankRates blog, the Federal Open Market Committee (FOMC) are meeting to decide the future direction of interest rates. The decision they make will have an effect on both current mortgage rates and deposits like savings accounts and CD rates.
Once the economy starts expanding again and the unemployment rate goes down considerably from the current rate of 9.4 percent the Fed will raise interest rates to keep a lid on inflation. Tightening monetary policy by raising interest rates probably won’t happen until late 2009 or early 2010.
If you’re thinking about getting a mortgage for a home purchase or refinancing a current mortgage you should act sooner than later. Also, if you are considering opening a certificate of deposit or renewing a certificate that is maturing I would recommend sticking with shorter term certificates of deposits for the foreseeable future.
Add a Comment