flexiblefullpage - default
Currently Reading

Weighing the Effects of the Fed's and Treasury's Latest Announcements

Advertisement
billboard - default
Economics

Weighing the Effects of the Fed's and Treasury's Latest Announcements

The upshot of the Jan. 31 announcements is that while mortgage rates will stay higher for longer, they're likely to hold steady


February 1, 2024
Housing mortgage rates with red house and percentage symbol
Image: vadim yerofeyev / stock.adobe.com

During its Jan. 31 meeting on Wednesday, the Federal Reserve confirmed it's holding interest rates steady, according to real estate services site Redfin. Although some investors anticipated a rate cut as soon as March, Fed chairman Jerome Powell indicated that's unlikely because the Fed lacks sufficient confidence in the economy's strength to cut rates that soon. That means we'll probably see a rate cut in May, at the earliest, and mortgage rates will remain elevated in the meantime. But in other news ...

... the January 31 announcement from the U.S. Treasury that they’re not expecting to increase the supply of treasuries was welcome news for the housing market. Less supply of treasuries means high prices and therefore lower interest rates. On balance, this means mortgage rates may hold steady as these two economic events work in opposite directions. 

Read more

 

Advertisement
leaderboard2 - default

Related Stories

Economics

Shelter Costs Drive Inflation Higher Than Expected in January

January Consumer Price Index data show inflation increased more than anticipated as shelter costs continue to rise despite Federal Reserve policy tightening

Economics

NAHB CEO Tobin Says 'Housing Renaissance' on the Horizon

Responding to positive housing-related data such as falling mortgage rates and increased homebuyer activity, NAHB's CEO Jim Tobin is optimistic 

Economics

Are Fed Rate Hikes a Thing of the Past?

The Federal Reserve held rates steady again in December and forecasts three rate cuts in 2024

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Sure there are challenges, but overall, Pro Builder's annual Housing Forecast Survey finds home builders are optimistic about the coming year

Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.