Atlanta Fed President Dennis Lockhart: Sept Rate Hike Appropriate

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Mortgage and Lending with Amerifirst Financial, Inc Equal Housing Oppurtinity Lender AZ BK0013635 NMLS 145368 LO:1015837

It's not a big secret that the Federal Reserve is looking to start raising the short-term interest rate in what would be the first hike of the rate in more than 9 years.  What's been in question isn't the if but the when. Many bond traders have been watching the economic data and shrugging off the Feds comments on a rate hike, thinking that the slower than expected growth will cause delays in the hike.  However, this afternoon Federal Reserve Bank of Atlanta President Dennis Lockhart said that he believes September is the appropriate time to raise the rate.  Mortgage Backed Securities reacted to this news with a pretty major sell-off, ending the day down 50 basis points from yesterday's close.  "It would take significant deterioration in the economic picture for me to be disinclined to move ahead (with a rate increase)," Lockhart said.  Lockharts comments follow St. Louis Fed president James Bullard who on Friday echoed the same sentiments. At this point it looks "more likely than not" that the Fed will indeed hike the rate in September.  Many analysts that are WAY more qualified than I am are split on whether or not it's the right thing to do. 

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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
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I can tell you that I don't believe fall is the right the time to raise it. I think spring is better.  The economy slows in winter anyway.

Aug 04, 2015 02:04 PM #1
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Mike Tizzano
Amerifirst Financial, Inc Equal Housing Oppurtinity Lender AZ BK0013635 NMLS 145368 LO:1015837 - Mesa, AZ
Protect Your Transaction Certified Lender

 I agree, 9 years ago when they raised the rate it turned out to be a disaster. It probably will be again but on a smaller scale. Tammy Lankford 

Aug 04, 2015 02:08 PM #2
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Mike Tizzano

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