On March 14-15th the Fed Funds Rate increases 0.25 percent, while wholesale inflation and Housing Starts heat up. As we have been hearing in the news lately about the Fed Fund rate increases, they moved forward with the rate increase. What does this mean exactly….well for one, it means that the economy is doing better.
There was good news from the housing sector, as the Commerce Department reported that Housing Starts hit a four-month high, rising 3 percent from January to February to an annual rate of 1.288 million. Housing Starts measure when excavation begins on a new home. Starts on single-family homes rose to a near 10-year high. From February 2016 to February 2017, Housing Starts were up 6.2 percent. The increase is a welcome sign for those in the market for a home as limited inventory has driven home prices up in many areas, discouraging some buyers.