{"id":35001,"date":"2015-07-10T11:38:09","date_gmt":"2015-07-10T18:38:09","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=35001"},"modified":"2020-10-06T17:08:30","modified_gmt":"2020-10-07T00:08:30","slug":"yellen-mortgage-rate-hike-this-year","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/yellen-mortgage-rate-hike-this-year\/","title":{"rendered":"What, Me Worry? Yellen Not Backing Off Rate Hike this Year"},"content":{"rendered":"<p>Global financial markets had a stormy week \u2013 Greece, China, Puerto Rico, yowza! But Federal Reserve Chair Janet Yellen isn\u2019t fazed. Today, she sent a strong signal that the central bank remains on track to raise interest rates later this year.<br \/>\n\u201cI expect it will be appropriate at some point later this year to take the first step to raise the federal funds rate,\u201d <a href=\"http:\/\/www.federalreserve.gov\/newsevents\/speech\/yellen20150710a.htm\" target=\"_blank\" rel=\"noopener noreferrer\">Yellen<\/a> told business and political leaders in <a href=\"https:\/\/redfin.com\/city\/4145\/OH\/Cleveland\/real-estate#!v=8&amp;sst=&amp;region_id=4145&amp;region_type=6&amp;market=ohio\" target=\"_blank\" rel=\"noopener noreferrer\">Cleveland<\/a>. OK, that might not<em>\u00a0sound<\/em>\u00a0like a strong signal. Trust us, in Fed code it is.<br \/>\nBut there&#8217;s always a &#8220;but&#8221; at the Fed. Here was Yellen\u2019s today: \u201cI want to emphasize that the course of the economy and inflation remains highly uncertain, and unanticipated developments could delay or accelerate this first step.\u201d<br \/>\nSluggish wage growth and the huge number of <a href=\"https:\/\/redfin.com\/blog\/2015\/07\/heres-the-other-story-in-todays-jobs-report-americans-are-dropping-out.html\" target=\"_blank\" rel=\"noopener noreferrer\">Americans dropping out<\/a> of the workforce are of particular concern, she said. On the other hand, job openings hit a record high of 5.36 million in May, a sign of business confidence. So is the job market healthy or not?<\/p>\n<h2>This is so confusing!<\/h2>\n<p>\u201cBy some metrics we\u2019ve gone beyond maximum sustainable employment, by others we haven\u2019t,\u201d Yellen said. Even her fellow Fed policymakers \u201cdiffer in their judgements on where we stand.\u201d<br \/>\nOK, look. The Fed isn&#8217;t\u00a0<em>totally<\/em>\u00a0sold on the labor recovery. <a href=\"https:\/\/redfin.com\/blog\/2015\/07\/how-an-empty-atm-in-greece-could-lower-mortgage-rates.html\" target=\"_blank\" rel=\"noopener noreferrer\">Greece<\/a>, China and Puerto Rico aren\u2019t out of the woods. And there\u2019s a chance we\u2019ll get disappointing news on the U.S. economy before central bank policymakers meet in September. Very little is written in stone.<br \/>\nBut today&#8217;s speech was one of the clearest signals the Fed has sent on a rate hike, and it comes despite the commotion overseas. The central bank doesn&#8217;t set the cost of home loans, but it&#8217;s\u00a0a\u00a0key player in the larger financial system that does. Signs still point to rising mortgage rates later this year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global financial markets had a stormy week \u2013 Greece, China, Puerto Rico, yowza! But Federal Reserve Chair Janet Yellen isn\u2019t fazed. Today, she sent a strong signal that the central bank remains on track to raise interest rates later this year.<\/p>\n","protected":false},"author":13355,"featured_media":35018,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[8],"tags":[32,74,19],"coauthors":[],"class_list":["post-35001","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing-market-news","tag-housing-market-tracker","tag-mortgage-tips","tag-politics"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What, Me Worry? 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Signs point to rising mortgage rates.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.redfin.com\/news\/yellen-mortgage-rate-hike-this-year\/\" \/>\n<meta property=\"og:site_name\" content=\"Redfin Real Estate News\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/redfin\" \/>\n<meta property=\"article:published_time\" content=\"2015-07-10T18:38:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-10-07T00:08:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2015\/07\/Janet_Yellen_official_Federal_Reserve_portrait-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"512\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Lorraine Woellert\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@redfin\" \/>\n<meta name=\"twitter:site\" content=\"@redfin\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Lorraine Woellert\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.redfin.com/news\\\/yellen-mortgage-rate-hike-this-year\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.redfin.com/news\\\/yellen-mortgage-rate-hike-this-year\\\/\"},\"author\":{\"name\":\"Lorraine Woellert\",\"@id\":\"https:\\\/\\\/www.redfin.com/news\\\/#\\\/schema\\\/person\\\/6395c928950a61ee52bf19341000cfd7\"},\"headline\":\"What, Me Worry? 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