Odds of August rate hike decrease

Interest rates have been rising consistently for a very long time now. The Federal Reserve, who is in charge of these rate hikes, has not slowed down in raising the rates again and again. But things are looking up. Analysts and futures traders are optimistic and believe the Fed may not raise rates again Aug. 8, according to the ‘To the Point’ section of the July 24, 2006 edition of The Wall Street Journal.

“Futures traders further cut the chances the Fed would raise rates again Aug. 8 to as low as 35% before the odds closed at 43%. That’s down from 49% Thurs. and 67% Wed. Odds haven’t been so low since mid-June,” according to the blurb.

The Fed Chairman, Ben Bernanke said that the Fed may break its steady string of 17 straight hikes in August. “He said a slowing economy should curb inflation.”

This is good news for just about everyone dealing with interest rates. If the rates do not go up again that means that mortgage payments will not increase and there could be fewer foreclosures.

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