FOMC Indicates Taper End In March, Rate Hike Soon
Officials at the Federal Reserve have been persuaded by rising inflation and a solid labor market that interest rates must be increased “soon.” However, a specific date has yet to be announced.
The Federal Open Market Committee (FOMC) resolved on Wednesday to hold the federal funds rate target range at 0 to 0.25 percent, but it is expected that rates will be hiked in early March.
Mortgage-backed securities and loan rates will rise in 2022 due to the announcement of a rate hike and the closure of the pandemic-era asset purchasing policy, which will strain mortgage-backed securities. For a typical 30-year mortgage, mortgage rates are currently above 3.5 percent, and the Mortgage Bankers Association predicts that by the end of the year, mortgage rates will rise to 4%. Read More