Mortgage rates increase according to Feds

Freddie Mac has reported an increase from 6.42% to 6.45% on a 30 year fixed rate mortgage. Rates on a 30 year fixed are still down from last year where rates were at 6.67%.

Rates on a 15 year loan also edged their way up from 6.02% to 6.04%. These numbers are down from last year as well, where rates were at 6.34% on a 15 year fixed-rate mortgage.

Frank Nothaft, vice president and chief economist at Freddie Mac, says "a lot of the stability was due to uncertainty about what the Fed would do at yesterday's meeting."

What did the Fed do at yesterday's meeting? The Federal Reserve is caught between a rock and hard place. With the pressure of inflation and the economy in a weak state, policymakers voted yesterday to keep interest rates at their current level.

The Federal Reserve released a statement following their meeting yesterday that voiced their mounting concern about inflation. "Although downside risks to growth remain, they appear to have diminished somewhat, and the upside risks to inflation and inflation expectations have increased," the statement said. "The committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability."