Leading Federal Reserve officials are sending out stronger signals that they will forego an interest rate increase at the central bank’s next meeting in June, though they indicate hikes could resume later this year.
“Skipping a rate hike at a coming meeting would allow (Fed policymakers) to see more data before making decisions” about whether to further increase rates, said Fed Governor Philip Jefferson in a speech Wednesday. Philadelphia Fed President Patrick Harker made similar comments.
Jefferson has been nominated by President Joe Biden to be the Fed’s vice chair, though he has yet to be confirmed by the Senate. But his nomination places him close to the center of Fed policymaking.
On May 19, Fed Chair Jerome Powell hinted that he also supported pausing rate hikes at the June meeting, to give the Fed time to evaluate the economic impact of its previous rate increases.
Mortgage rates tick up 3rd straight week
The average long-term U.S. mortgage rate climbed this week to its highest level since November, driving up borrowing costs for would-be homebuyers at a time when the housing market is being held back by a near record-low inventory of homes on the market.
Mortgage buyer Freddie Mac said Thursday that the average rate on the benchmark 30-year home loan rose to 6.79% from 6.57% last week. A year ago, the rate averaged 5.09%.
The latest increase marks the third in three weeks and lifts the average rate on a 30-year home loan to its highest level since it surged to 7.08% in early November.
The average rate on 15-year fixed-rate mortgages, popular with those refinancing their homes, rose to 6.18% this week from 5.97% last week. A year ago, it averaged 4.32%, Freddie Mac said.
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