Follow Us: Google+
 
Bankrate.com

mortgage

Fed affects banks, rates, prices and jobs

The job market
Next
Slide 5 of 10
Previous
The job market

You probably never thought of the Fed the last time you updated your resume. But the Fed is thinking of you. At every meeting, the FOMC considers labor market data as they make decisions aimed at lowering the unemployment rate to about 5.5 percent or 6 percent. They look at numbers such as payroll changes, hiring, the labor force participation rate and duration of unemployment.

The Fed can only indirectly affect the job market, by lowering interest rates to encourage more borrowing. That prompts businesses to take out loans to purchase new machinery or invest in new equipment and encourages consumers to borrow in order to buy goods and services, Faucher says.

"That increases aggregate demand. Then businesses are producing more and they need to hire more workers," he says. "That in turn leads to a better labor market and lower unemployment rate."


Next
Slide 5 of 10
Previous

 

 

advertisement

Show Bankrate's community sharing policy
            Connect with us
Compare Mortgage Rates
Zip code:
Product:



advertisement
Most Read
  1. Nick Nolte's house for sale
  2. 8 eerie ghost towns
  3. 5 best markets for home values
  4. What does a kitchen remodel entail?
  5. Don't sell a smelly house
  6. Headlight requirements by state
  7. 9 gas-only, fuel-efficient cars
  8. 8 affordable, classic cars for retirees
  9. 5 car models that lose value
  10. Top 10 states for foreclosure
Mortgage Overnight Averages
Product Rate +/- Last week
30 yr fixed mtg
3.60% 3.52%
15 yr fixed mtg
2.74% 2.71%
5/1 ARM
2.54% 2.57%
30 yr fixed mtg refi
3.58% 3.50%
View rates in your area:
 

Feeling lost in the mortgage wilderness?

Let Bankrate's Mortgage Analysis be your GPS. This newsletter tracks our exclusive mortgage features, rates and tools. Delivered Thursdays.
 
advertisement
At the start of the traditional buying season, housing news is mixed.
Partner Center
advertisement

Advertising Disclosure: Bankrate.com is an independent, advertising-supported comparison service. Bankrate may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.