Will the Federal Reserve continue to raise interest rates?
Some thought there’d be only one more interest rate hike before the Fed started taking it easy.
Based on the latest data, it might take several more increases before they’re done. And that could affect your mortgage loan rates.
Overall retail prices went up 4 percent from January 2005 to January 2006. Energy prices went up 24.8 percent in those six months. Transportation went up 7.3 percent. Housing went up 4.3 percent. Food prices rose 2.6 percent. Clothing got cheaper by 1 percent.
The Federal Reserve wants to keep inflation under 2 percent. With unadjusted overall prices rising 4 percent in one year, you would think the Fed has some more rate increases in store.
Complete article: Mortgage Matters – by Holden Lewis, Bankrate.com