As anticipated, the Federal Open Market Committee Wednesday voted to cut interest rates. The committee decided to lower the target range for the federal funds rate by half a percentage point to 4-3/4 to 5 percent.
“The committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance,” the committee stated in a press release.
Only one committee member, Michelle Bowman, voted against the decision. She preferred to lower the rate range by .25 of a percentage point.
As far as possible future cuts, “the committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” the committee stated. “The committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.”
This reduction marks a potential turning point for the housing market and title insurance industry, which has struggled with drastically reduced transaction volumes since rate hikes began roughly two years ago.
Check back with The Title Report, which is interviewing industry experts to explain what this cut means for the industry.