The Federal Reserve kept rates anchored at a range of 5.25-5.5% following its January meeting, keeping to the path many predicted it would continue to follow. Following the meeting, Marty Green spoke with reporters about what this decision would signify for the residential real estate and mortgage markets.
“As expected, the Federal Reserve maintained the holding pattern for the federal discount rate that has been in place since the Fed last raised rates in July of 2023,” Green said. “Like a pilot landing a plane in fog, the Federal Reserve is being very patient and deliberate before taking additional action to reduce interest rates.”
Green added: “As long as the economy remains relatively strong and inflation continues to moderate, as it has in recent months, the Fed can circle the runway for another meeting cycle or two before trying to navigate the soft landing it has hoped for. But the American consumer, who has been bolstering the economy, may very well be running on fumes at this point, and some interest rate relief in the coming months will likely be necessary for the economy to maintain a healthy growth pace.”
Green’s comments were included in the following coverage:
- Scotsman Guide: Fed keeps rate unchanged after January meeting, dampens prospects of March cut
- Mortgage Professional America: Mortgage rates edge lower as the Fed holds rate steady