Rates Remain Low for Now, Fed Announces

September's Fed meeting was the time it was anticipated that the Fed would finally raise rates. Now, some expect that the rate will remain low even at the end of 2015.

According to Zillow, the Federal Open Market Committee announced today that the benchmark interest rate for short-term lending will remain at its current target level of 0 percent to 0.25 percent.

“The federal funds rate, and in turn mortgage rates, remain low and will likely end the year roughly where they started it,” says Zillow Chief Economist Svenja Gudell.

Though most markets won’t be much affected by an interest rate hike, homebuyers in unaffordable markets will have even less wiggle room when it comes to housing they can afford when rates finally do increase, expected to happen in the near future.

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