Last Friday's jobs report from the U.S. Department of Labor makes it likely the Fed will increase the overnight interest rate this week.
“We're actually starting to see wage growth start to pick up,” says KTRH Money Man Pat Shinn. “That was actually one of the road signs that Janet Yellen said she would be watching before raising rates, and we're seeing it.”
Shinn calls it a logical move based on the positive jobs picture. This shouldn't panic home buyers.
“We're looking at the overnight lending rate,” he says. “If you're shopping for a mortgage, this shouldn't have anything to do with that.”
The Federal Reserve board meets Tuesday and Wednesday, March 14-15. Observers put the likelihood of a rate increase at more than 90 percent.
Shinn says, “The employment report we got back on Friday has basically given the Federal Reserve the go-ahead.”