The fed raised interest rates by .25% yesterday.  The fed continues with its tightening stance.  Some core inflation metrics have come down over the past few months.  This led some economists to predict that the fed would pause on tightening.

The fed has said that they will continue with their tightening stance for the foreseeable future.  The fed is still walking a tightrope between inflation and unemployment.  The fed seems to believe that although we have seen some decline, recently, in inflation, we are not out of the woods yet.  The fed anticipates that the supply chain will still be right and inflation may rise further in the coming year.

Although the fed has increased the fed funds rate again, we have seen improvements in the bond market and mortgage rates.  Mortgage pricing has improved by approximately .375% since the beginning of the week.  This may just be a short-term improvement.  We may see mortgage pricing rise again as investors digest news in the coming weeks.