This week we were on Fed Watch. The Federal Reserve Board met and decided not raise the fed funds rate. A relief to some, a disappointment to others. Some are concerned that if they wait too long, the inflation will have kicked in and then we are chasing it instead or curtailing it. Some think inflation is healthy.
There was language in their meeting minutes indicating that they are prepared to raise their rate at the June meeting, and that they will raise the rate at least 2 more times this year. Stock market went down and mortgage rates temporarily went up then slid back down, on this news.
Thursday the Consumer Price Index, or CPI , was up 0.4% which was more than expected. Today, Friday, existing home sales were up more than the market expected at 1.7% which is slightly inflationary news but did not move rate.