In this week’s economic review, consumers are feeling confident in their current economic situation, mortgage rates increased, and the Federal Reserve voted on a rate bump.
The Federal Reserve approved another rate hike on Wednesday and indicated that two more increases are coming in 2018. Wednesday’s vote pushes the target range for the federal funds rate to 1.75 to 2 percent.
While economists are putting the probability of a fourth rate hike at just over 50 percent. If the Fed follows through with their projected increases, the target funds rate will end the year at 2.25 percent to 2.5 percent.
Amidst economic growth, low unemployment and rising wealth levels, U.S. consumers were feeling more confident in their current financial situation at the beginning of June. Expectations for the future, though, dropped.
Consumers are also expecting the inflation rate to increase with year projections of +2.9%, the highest expected inflation rate in 3 years.
This week in the economy:
- As of June 7th, the 30-year average fixed rate was 4.62% with 0.4 points, according to Freddie Mac.
- In the week of June 8th, the refinance index dropped 2% from the previous week and the seasonally adjusted purchase index fell 2% from the previous week.
- In the week of June 9th, initial jobless claims fell 4,000 to a seasonally adjusted 218,000. The number of Americans on unemployment has now declined to a near 44-year low.
The economic calendar for the week of June 18th, 2018:
- Monday – Home Builders Index
- Tuesday – Housing Starts & Permits
- Wednesday – MBA Mortgage Applications, Existing Home Sales
- Thursday – Jobless Claims
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