RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Fed: Rates Increased for Second Time This Year

Home Latest News
By Liz Dominguez
June 20, 2018
Reading Time: 2 mins read
Fed: Rates Increased for Second Time This Year

Image of successful entrepreneur standing on the road turning into upward arrow with Interest Rates words on it

As predicted by all officials, the Fed raised rates for the second time in 2018—from 1.75 percent to 2 percent. The remainder of 2018 and 2019 may see more gradual hikes, with analysts predicting two more increases by year’s end in order to curb future inflation concerns following reports of a strong labor market and economic conditions.

“In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1-3/4 to 2 percent. The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2 percent inflation,” according to a Fed statement.

“Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability,” the statement continued. “The Committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions and inflation near the Committee’s symmetric 2 percent objective over the medium term.”

Indicators point to a healthy market with a declining unemployment rate and strong job gains.

“Job gains have been strong, on average, in recent months, and the unemployment rate has declined. Recent data suggest that growth of household spending has picked up, while business fixed investment has continued to grow strongly. On a 12-month basis, both overall inflation and inflation for items other than food and energy have moved close to 2 percent. Indicators of longer-term inflation expectations are little changed, on balance,” according to a Fed statement.

The impact on mortgage rates? The cost of borrowing may continue to rise from the current average of 4.54 percent for a 30-year fixed rate mortgage, which dipped for the second consecutive week according to Freddie Mac—a short-term departure from the recent string of increases and which led to a 4 percent increase in purchase applications.

“We are still in the middle innings of rising interest rates; consumers should expect another three or four rounds of interest rate increases over the next 18 months” said Lawrence Yun, chief economist of the National Association of REALTORS® (NAR), in a statement. “Mortgage rates will consequently continue to nudge higher. Fortunately, the economy is strong and wages are rising. If housing supply can be increased through more home building, then the negative impact of rising interest rates can be mitigated.”

Dominguez_Liz_60x60_4cLiz Dominguez is RISMedia’s associate content editor. Email her your real estate news ideas at ldominguez@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

Tags: Federal ReserveFiscal PolicyInflationInterest RatesMonetary PolicyMortgage RatesRate Hikereal estate newsU.S. Economy
ShareTweetShare

Liz Dominguez

Related Posts

Real
Agents

Getting ‘Real’ With The Real Brokerage

May 13, 2025
Inflation
Economy

Annual Inflation Inches Down, but Uncertainty Still Looms

May 13, 2025
Anywhere
Agents

Anywhere Names Steve Capezza as New SVP of Growth, M&A

May 13, 2025
NAR
Agents

NAR REALTOR Benefits® Adds Ask the Agent as Newest Partner

May 13, 2025
Amid ‘Scary Headlines,’ How One Team Achieved a Record Q1
Industry News

Amid ‘Scary Headlines,’ How One Team Achieved a Record Q1

May 12, 2025
Forbes
Agents

Forbes Global Properties and RBN Announce New Alliance

May 12, 2025

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

To Win Buyers, Be a Local Market Expert

Ready to stand out? These six strategies show buyers why you’re the agent they need. Learn more.

Business Tip of the Day provided by

Recent Posts

  • Getting ‘Real’ With The Real Brokerage
  • Annual Inflation Inches Down, but Uncertainty Still Looms
  • Anywhere Names Steve Capezza as New SVP of Growth, M&A

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2025 Newsmakers
    • 2024 Newsmakers
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2025 Power Broker
    • 2024 Power Broker
    • 2023 Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X