Markets in a Minute, 4/29 | Fed leaves policy rates unchanged

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Markets in a Minute, 4/29 | Fed leaves policy rates unchanged

May 1

12:58

Category | Markets in a Minute

Week Ending April 29, 2016

	The Fed left policy rates unchanged at this month's FOMC meeting, but left the door open for future increases. The Fed's next FOMC meeting is in June.

	Consumer spending has slowed recently, and the economy stalled in the first quarter with just 0.5% increase to the GDP. This supports low mortgage rates.

	The bright spot in the economy is the strengthening labor market. This week's initial jobless claims continued to cling near a four-decade low at 257,000.

	New home sales unexpectedly fell in March, but the decline was concentrated in the West region. The Midwest and South actually saw sales rise in March.

	Pending home sales were up 1.4% in March, the highest pace in nearly a year. Demand remains strong with low interest rates helping home affordability.

	Home prices continued to rise in February according to the Case-Shiller Index. Tight inventory remains a concern and is helping to keep prices rising.

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.

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