Federal Reserve Chairwoman Janet Yellen spoke out for the first time since international economic events in Greece and China caused uncertainty about the future of global financial stability. Her comments signaled that it might be time for a rate hike later this year.
With the European Union in turmoil over the Greek default and China reeling over a stock market tumble, the Fed reaffirmed its intention to raise short-term interest rates within the next several months. Ms. Yellen claimed that the rate increase would be a step to “begin normalizing monetary policy.”
Borrowers with adjustable mortgages tied to short-term interest rates may see in increase in monthly payments. Consumers who foresee paying a higher interest rate may want to consider refinancing to take advantage of the stability of a fixed-rate mortgage with today’s conforming no point 30-year fixed rates averaging 4.125 percent and 15-year fixed rates averaging 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381–8888 and your question may be featured in an upcoming article.