After months of speculation, the Federal Reserve announced on Wednesday that it would raise short-term interest rates, the New York Times reports.
The Fed said it would raise rates between 0.25 and 0.5 percent, and it will be the first increase since the financial crisis.
The plan is to raise rates gradually, provided that economic growth continues. Short-term rates will rise by one percentage point per year through the next three years, and interest rates on mortgages, loans, and savings accounts are expected to remain low for the foreseeable future.
“The committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will continue to expand at a moderate pace and labor market indicators will continue to strengthen,” the Federal Open Market Committee said in a statement.
Advertisement
Related Stories
Single-Family Homes
What Does It Cost to Build a Single-Family Home?
A closer look at the itemized costs in each stage of construction for a single-family home
Builders
A Look at the Boom in Home Builder Stocks During 2023
In 2023, stocks for the 10 biggest U.S. home builders outperformed the S&P 500. What does that say about the housing market?
Financials
Housing Demand Could Rebound in 2024 as Mortgage Rates Ease
The Mortgage Bankers Association predicts lower mortgage rates could bring homebuyers back into the market in 2024
