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QUOTE OF THE WEEK... "My interest is in the future because I am
going to spend the rest of my life there." --Charles Kettering,
American inventor
INFO THAT HITS US WHERE WE LIVE... From Wall Street to Main Street, there's big interest in the future of interest rates. The focus is on when the Fed will begin raising its rock-bottom Funds Rate, which has kept mortgage rates low. It's difficult to call this by listening to Fed members. Vice Chair Stanley Fisher says: "...the timing of the first rate increase and any subsequent adjustment to the Federal Funds Rate target will depend critically on future developments in the economy." In other words, he doesn't know. Cleveland Fed head Loretta Mester does seem to know, saying on Friday, "...we should raise a quarter point now and let the data decide from there."
Mester, however, doesn't have a vote until January. Prior to her comment, Fed Governor Daniel Tarullo was quoted suggesting the Fed may not act this year. But economists expect a rate hike at some point, and that raises the question of its impact on the future housing market. The chief economist for a real estate portal contends that mortgage rates would need to rise more than 2% before buyers had to substantially lower the price range in which they're looking to purchase. A hike of just a quarter percent would still leave mortgage rates near historical lows. The Fed has said it expects to raise rates in small increments over a long period of time. Crystal ball, anyone?
BUSINESS TIP OF THE WEEK... Stay determined, no matter what. Look at defeat as a new opportunity for success. Be so determined to make all your efforts succeed, you'll keep trying until they do. Never buy into the idea that something cannot be done.
INFO THAT HITS US WHERE WE LIVE... From Wall Street to Main Street, there's big interest in the future of interest rates. The focus is on when the Fed will begin raising its rock-bottom Funds Rate, which has kept mortgage rates low. It's difficult to call this by listening to Fed members. Vice Chair Stanley Fisher says: "...the timing of the first rate increase and any subsequent adjustment to the Federal Funds Rate target will depend critically on future developments in the economy." In other words, he doesn't know. Cleveland Fed head Loretta Mester does seem to know, saying on Friday, "...we should raise a quarter point now and let the data decide from there."
Mester, however, doesn't have a vote until January. Prior to her comment, Fed Governor Daniel Tarullo was quoted suggesting the Fed may not act this year. But economists expect a rate hike at some point, and that raises the question of its impact on the future housing market. The chief economist for a real estate portal contends that mortgage rates would need to rise more than 2% before buyers had to substantially lower the price range in which they're looking to purchase. A hike of just a quarter percent would still leave mortgage rates near historical lows. The Fed has said it expects to raise rates in small increments over a long period of time. Crystal ball, anyone?
BUSINESS TIP OF THE WEEK... Stay determined, no matter what. Look at defeat as a new opportunity for success. Be so determined to make all your efforts succeed, you'll keep trying until they do. Never buy into the idea that something cannot be done.
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