Market rates along the curve rarely move in a parallel fashion, and the change in the slope of the curve can be just as important as the actual change in rates.
Federal Reserve Chairman Janet Yellen said yesterday that she still expects economic conditions will warrant an interest rate hike “sometime later this year,” followed by a “a gradual pace” of increases.
Housing will continue improving through 2017 in a modestly rising rate environment, says Fannie Mae’s Douglas G. Duncan.
Citing improved labor market conditions, growing consumer spending and reduced “drag” from government fiscal policies, Federal Reserve Chairman Janet Yellen said today that she expects it will be appropriate to begin the process of raising the federal funds rate “later this year.”
Though several members agreed that the U.S. economy is moving towards their objectives, the Federal Open Market Committee (FOMC) in June concluded that conditions did not yet warrant an increase in the federal funds rate.