Inflation hoped for by Fed, shows slight rise
Minutes from the Federal Reserve’s last meeting, released April 29, 2015, maintained the bank’s optimistic tone about the economy despite a weak first quarter this year. Labor statistics and related economic indicators in particular continued to move toward fulfilling the Federal Reserve’s expectations about inflation.
According to a report from the Labor Department, released on 4/30/15, the cost of employing the average U.S. worker climbed 0.7 percent in the first quarter of 2015. This is one of the most closely watched measures of wage inflation, and employment costs have risen 2.6 percent over the past 12 months.
The Federal Reserve’s ten committee members voted unanimously to keep short-term interest rates between 0.0 – 0.25 percent in April, where it has been since December of 2008, but they left a summer rate hike on the table. The Fed will be gauging reports like this one and the two major upcoming jobs reports before its next meeting in June.
As for long-term interest rates, homebuyers and homeowners looking to refinance will find that conforming no point 30-year fixed mortgages average 3.75 percent while 15-year mortgages average 3.0 percent.
For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.