The Federal Reserve Bank is continuing to practice patience with interest rates. It adjourned Wednesday with no hikes or cuts.
On April 30, the president advised the Fed to cut its benchmark federal funds rate by 1% and issue further stimulus, according to?The Mortgage Reports.?As the article said, the Fed didn’t bite. The group maintained its rate at a range between 2.25 and 2.50%. Still, many believe the group is feeling pressure to, if nothing else, keep rates where they are.
The Mortgage Report blog said that could lead to mortgage interest rates dropping in coming days, thanks to the “patient” stance from the Fed. There have been surprisingly few factors pushing up mortgage rates of late – only ones that apply downward pressure. And the Fed announcement was another heavy weight upon interest rates, making it hard for them to rise. It could be the perfect storm for mortgage shoppers, said the report.