Janet Yellen, the chairwoman of the Federal Reserve hinted Wednesday (Dec 2nd) that economic conditions were looking favorable for the Federal Reserve to possibly raise interest rates this month at their Open Market Committee meeting (December 15-16). “The economy has come a long way toward the (Federal Open Market Committee’s) objectives of maximum employment and price stability,” Yellen said during a speech to the Economic Club of Washington. Mortgage loan interest rates are near an all time low and the federal funds target rate has not been increased since 2006. The federal funds rate has been at .25% since the beginning of 2008 and analysts and investors are predicting a .25% – .50% increase come the December 15th meeting. If the Fed does increase the target rate come the December meeting, mortgage loan interest rates are likely to increase.
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