The Federal Reserve is to meet in 12 days. The Fedwatch tool shows a 86% chance the Feds cut rates by 0.25%.
“The Fed cutting rates a quarter point this month is more about a long-term trend,” Christopher Clarke, a professor of economics at Washington State University. “Overall, we’re expecting a whole percentage point this year and another percentage point next year, so that’s going to lower interest rates on auto loans, mortgages, credit cards, et cetera.”
With Trump’s proposed combination of tariffs, tax cuts could increase inflation by one percentage point, some economists project. If that happens, the Fed would have to raise rates to control inflation again.
Mortgage Interest Rates
Interest rates has been extremely stable over the last few weeks, that’s a lot better than volitile recently and moving up towards and back up to the 7% in November of 2024.
