February 4, 2025
The economic new year is now rolling along. While the markets await the anticipated results of the new Administration’s policies, the economy does not wait for anyone. Last week was the first big economic event of the year – a meeting of the Federal Reserve’s Open Market Committee. Most were predicting a pause by the Fed after lowering rates in December for the third time in 2024.
After two quick decreases at the end of the year, analysts were predicting the Fed would slow things down in 2024 because inflation was still exceeding their target rates of 2.0%. The softer inflation news that was released in January did give some hope that we might see the Fed a tad more aggressive than the markets were thinking. Nevertheless, the Fed did start the year by taking a pause, which means the first rate-cut of 2025 will not come until March, since the Fed does not meet in February.
This week we will see the first big data of 2025. January’s employment report will be released this Friday. We ended 2024 with a very strong report, as the economy added over a quarter of a million jobs to end the year. The economy added over two million jobs in 2024, and this strong job market is a significant factor which has given the Fed confidence to keep interest rates “higher for longer.” Thus, it will be interesting to see if the momentum continued into 2025. Circling back to the Administration’s policies, the creation of even more jobs is a high priority, which the Fed may see as inflationary. Too many jobs? A better problem than the opposite, we would think.
Source: origination Pro
Call (718) 943-9200
AMERIMUTUAL Mortgage located in Astoria, Queens NY is family-owned and operated local business that is proud to make a difference by matching home buyers with the right mortgage products for their needs.
As a respected leader in the NYC, New York lending business, AMERIMUTUAL has been successful in revolutionizing the industry one mortgage at a time. Our company values are grounded in the principles of honesty and fair dealing. For you, this means responsible lending with reasonable fees and you can enjoy a worry-free lending experience from a local Astoria, NY business you can trust.
AMERIMUTUAL is an Upfront Mortgage Broker that places a premium on transactional transparency. Our valued clients appreciate this advantageous approach and enjoy the benefits of having a mortgage broker that is fully aligned with consumer interests.
Review our A+ Rating and information on file with the Better Business Bureau.