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Instant Reaction: Lawrence Yun on Today’s FOMC Announcement

Below is the following statement from NAR Chief Economist Lawrence Yun on the Federal Reserve’s decision today to stand pat on raising short-term rates:

Today’s FOMC decision is only a short-term, temporary pause. With no change in monetary policy, mortgage rates look to remain within the narrow band of 4.0% to 4.5% for the foreseeable future. However, the future path of rate hikes and changes in bond purchase levels will depend upon inflationary pressures. Without adequate increases in new housing production, both rents and home prices will accelerate, and therefore complicate the Fed’s desire for full employment and price stability.”