Mortgage Rates Drop
Over the past year the Federal Reserve has increased the federal funds rate a total of nine times—but this last one was a bit different. The Federal Open Market Committee unanimously decided to hike the overnight lending rate by 25-basis points putting it in a range of 4.75%-5.00%. But the comments made by Fed Chairman Jerome Powell after the meetings are leading many investors to believe the FOMC will slow down its hawkish approach to curbing inflation.
The collapse of Silicon Valley Bank, the takeover of Signature Bank and the most recent “run” on Pacific Western Bank have forced the Fed to recalibrate its quantitative tightening measures. The long-term worry is that banks will be less willing to lend to businesses and households due to the risk which could grind the economy to a screeching halt. The post-meeting statement released by the FOMC was more dovish than its previous release, and read “The Committee will closely monitor incoming information and assess the implications for monetary policy.
