After much speculation that the Fed was poised to raise interest rates, it now seems very unlikely that rates will go up in June or even in July. The jobs report for May was the weakest in the past six years. Only 38,000 jobs were created in May, though experts predicted the creation of 155,000 new jobs. Comments from Fed Chair Janet Yelland lent credence to earlier speculation that she was poised to increase rates. Earlier in the month, both Yelland and other officials cited increased consumer confidence and steady, if slow, recovery from the winter slump last year.
Interest Rates Will Not Go Up for Silicon Valley Home Buyers
It’s hard to say what effect this will have on Silicon Valley home selling. On the one hand, a weak jobs report isn’t good news for anyone. However, Silicon Valley continues to enjoy a robust economy. Mortgage rates will remain at their historic lows, which as proven enticing for buyers this year. The area’s many amenities, as well as good economic prospects, make the Silicon Valley real estate one of the fastest-moving in the state. It will be interesting to see what statements come out of the Fed policy meeting, which will be held June 14th to the 15th. Summer is historically the most active time in the real estate market.