News & EventsResearch Weekly - The "Fed Rate" and How it Impacts Utah Dec. 2016 « Back to Search Results
On December 14, 2016, the US Federal Reserve (“Fed”) increased interest rates by 25 basis points. (For an explanation of the Fed rate, see our previous Research Weekly.) What impact will this rate increase have on Utahns?
Many assume we will see immediate increases in mortgage rates, given the Fed rate influences loan rates, but mortgage rates have already been increasing recently—partly in anticipation of the Fed rate increase and partly due to the strengthening housing market and economy. It is therefore not likely we will see a noticeable change in the short-run for loan rates. What this increase does signify is the direction we can expect rates to move in the long-run; as the economy continues to improve, the Fed will continue to increase rates and we will see those rate increases passed on to consumers.
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