Expect interest rates to continue the slow, steady march higher. That was the message from Federal Reserve Chairman Jerome Powell at his closely watched speech Friday in Jackson Hole, Wyoming, site of the Fed’s annual retreat.

Powell said he sees economic strength in the U.S. economy and plans to keep on the current policy course. He said the Fed is focused on balancing the dual risk of runaway, inflation-inducing growth and opposing forces that could halt expansion.

“I see the current path of gradually raising interest rates as the [Federal Open Market Committee’s] approach to taking seriously both of these risks,” he said. “As the most recent FOMC statement indicates, if the strong growth in income and jobs continues, further gradual increases in the target range for the federal funds rate will likely be appropriate.”

The Fed has approved seven quarter-point rate hikes since December 2015, bringing the target rates up to 1.75 percent to 2 percent. Rates had been at zero during the recession and recovery that began in 2008. There have been two hikes so far this year, and two more are likely coming.

Powell said factors that could change the policy course would include unsteady economic conditions overseas. He also said the bank’s policy would change if the domestic economy took a drastic turn for the worse.

As for inflation, Powell said doing too little to control price increases and economic overheating can be a greater risk than doing too much.

“The economy is strong. Inflation is near our 2 percent objective, and most people who want a job are finding one,” he said. “My colleagues and I are carefully monitoring incoming data, and we are setting policy to do what monetary policy can do to support continued growth, a strong labor market, and inflation near 2 percent.”

He indicated a general comfort level with current conditions of sustained strong growth and the Fed’s gradual approach to rate increases.

Trump pressures the Fed

The speech won’t likely win Powell favor with the White House. Earlier this week, President Trump continued his verbal pressure on the Fed, saying the central bank should be more accommodating in its interest rate policy.

In an interview with Reuters, Trump said he was “not thrilled” with Powell’s stance on rate hikes. The Fed chairman has presided over two rate increases since his presidential appointment. Rates have increased five times since Trump took office.

“I should be given some help by the Fed,” Trump told the news service. He added the central bank should do “what’s good for the country.”

Housing data

On the housing front, data released this week suggested home price appreciation may be cooling off slightly as summer ends.

The FHFA house price index, released Thursday, rose 0.2 percent in June, one tenth below consensus expectations, and the year-over-year rate slowed to 6.5 percent. Home prices rose in seven of the report’s nine regions, with the largest price increases in the Mountain (+0.7%) and East South Central (+0.6%) regions. Prices declined in the South Atlantic (-0.4%) and New England (-0.4%) regions.

Home price appreciation, driven by demand that outpaces supply, has made affordability a challenge for many buyers. A slower growth rate in home prices may help being balance to a strong seller’s market in many places.

We will see over the coming months if this is a one-month blip or the beginning of a trend.

Greece bailouts end

In global economic news this week, Greece is celebrating an end to eight years of government financial crises.

Monday is an historic day for Greece as nearly a decade of external financial help comes to an end.

Back in 2010, the country’s public debt became so high that investors were no longer willing to support the nation’s finances. As a result, Greece has relied on European creditors and the International Monetary Fund (IMF) to keep its finances afloat. Now, Greece can finally claim financial independence.

“Today we celebrate the end of a very long and difficult journey,” European Commission Vice President Valdis Dombrovskis told CNBC. “What matters now is to build on this achievement by sticking to sound fiscal and economic policies.”

However, some analysts argue that this is more a “symbolic” moment and there is plenty yet to do to improve the Greek economy. “Both the EU and the Greeks will try to put a positive spin on the end of the bailout, but there is little to celebrate,” Constantine Fraser, European analyst at research firm TS Lombard, told CNBC via email.

While analysts are still skeptical about the nation’s long-term health, this milestone is a step in the right direction for Europe. If Greece and its neighbors in Southern Europe can keep increasing financial stability, it will boost confidence and could help push interest rates higher.

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ABOUT THE AUTHOR:

GREG RICHARDSON – EVP OF CAPITAL MARKETS

Greg Richardson is Movement’s EVP of Capital Markets and a contributing author to the Movement Blog. His weekly market update is a must-read commentary on financial markets, the mortgage industry and interest rates. Greg is an industry veteran who knows how to read the financial tea leaves and make complex industry data easy for loan officers, real estate agents and homebuyers to understand.

Ryan Rosenthal with the Movement Mortgage Builder Division stepped into the Mortgage Mom Radio Studio this morning to discuss all things New Home Builder.  What are the negatives to buying a new home and what are the positives? Did you know that you can lock in an interest rate for an entire year when you shop with a new home builder? This episode is focused on purchasing a new home vs. resale, download now to learn more!

Mortgage Mom Radio can be found on iTunes, Google Play, Tune-in or Stitcher! Listen to 100’s hours of past shows. Why should you download it today? It’s FREE education to anyone who wants to navigate the Real Estate and Mortgage Process. Buying a home can be stressful and we want to make it as smooth of a transaction as possible for you.

Have you purchased your tickets to our next HOMEBUYER WORKSHOP? If not, click on the following link for more details: mortgagemomradio.com/EVENTS This will be our last workshop this year! Don’t miss out. It’s only three hours of your life, why wouldn’t you invest in your future? Get your tickets today! P.S. Go Country 105 will be raffling Go Fest Tickets at the event!

Like and Follow our Facebook Page to watch our Facebook Live Episodes!

The Mortgage Mom Radio Phone APP! Do you have it in your arsenal of tools? You can run payments, use our affordability calculator, listen to past episodes, register for our upcoming events, contact us, apply for your loan, and so much more. Download it today for FREE! DOWNLOAD NOW

Would you like to be a guest on our show? Call us 844-935-3634, we’d love to hear from you!

Would you like to call in with questions while we are LIVE ON AIR? We answer calls live during every show on Saturday Morning’s from 7AM-8AM, 844-935-3634!

The Mortgage Dad, Armen Karapetian, was hanging out in the studio during this weeks episode of Mortgage Mom Radio! We discuss kids, down payment assistance, our free phone app and much more! Armen is fluent in Armenian and Farsi and his wife who is his partner, Vivian Ulrich, is fluent in Spanish. They bring a wealth of knowledge to the Mortgage Mom Radio Team. It was certainly fun bringing a little bit of testosterone into the studio! We enjoyed many live calls with numerous lending questions. It was a great episode for all of those who are learning to navigate the Real Estate and Mortgage Process.

Mortgage Mom Radio can be found on iTunes, Google Play, Tune-in or Stitcher! Listen to 100’s hours of past shows. Why should you download it today? It’s FREE education to anyone who wants to navigate the Real Estate and Mortgage Process. Buying a home can be stressful and we want to make it as smooth of a transaction as possible for you.

Have you purchased your tickets to our next HOMEBUYER WORKSHOP? If not, click on the following link for more details: mortgagemomradio.com/EVENTS This will be our last workshop this year! Don’t miss out. It’s only three hours of your life, why wouldn’t you invest in your future? Get your tickets today! P.S. Go Country 105 will be raffling Go Fest Tickets at the event!

Like and Follow our Facebook Page to watch our Facebook Live Episodes!

The Mortgage Mom Radio Phone APP! Do you have it in your arsenal of tools? You can run payments, use our affordability calculator, listen to past episodes, register for our upcoming events, contact us, apply for your loan, and so much more. Download it today for FREE! DOWNLOAD NOW

Would you like to be a guest on our show? Call us 844-935-3634, we’d love to hear from you!

Would you like to call in with questions while we are LIVE ON AIR? We answer calls live during every show on Saturday Morning’s from 7AM-8AM, 844-935-3634!

In this weeks episode, we discussed the rising interest rates and whether homebuyers and sellers are being deterred from shopping and selling. Download the full episode from iTunes, Google Play, or anywhere else that you like to listen to your podcasts.

We had Michelle Cervantes with Callaway Realty on as our special guest and she was just amazing! She offered a unique perspective on the current market, where the “hot” areas are now and her opinion of buy vs. rent in today’s market. If you would like to reach out to Michelle directly, you can reach her at (626) 712-7143.

Mortgage Mom Radio will be LIVE on Facebook from the Go Country Studio this Saturday, August 18th. Make sure that you like our Facebook page if you want to watch us LIVE!

Want to listen to past episodes of Mortgage Mom Radio? We have over 100 hours posted of past episodes where you can listen and learn for FREE! Listen anytime from our WEBSITE  or you can download our Phone App, iTunes, Google Play, Tune-in or Stitcher!

**Like and Follow our Facebook Page to watch our Facebook Live Episodes!

**What else can you do with our phone app? You can run payments, use our affordability calculator, listen to past episodes, register for our upcoming events, contact us, apply for your loan, and so much more. Why not? Download it today for FREE! DOWNLOAD NOW

Would you like to be a guest on our show? Call us 844-935-3634, we’d love to hear from you!

Would you like to call in with questions while we are LIVE ON AIR? We answer calls live during every show on Saturday Morning’s from 7AM-8AM, 844-935-3634!

Have you purchased your tickets to our next HOMEBUYER WORKSHOP? If not, click on the following link for more details: mortgagemomradio.com/EVENTS

Mortgage Mom Radio has partnered with DCFS to help those kids in the foster care system get a good start to their school year! Our goal is to help the older kids who are very often forgotten.

We will be accepting donations from now through August 4th at our office in Stevenson Ranch. Please feel free to ship items directly to us if we are too far for a drop off. You are welcome to stop by, meet the Mortgage Mom’s and let us thank you personally.

Would you like to be a guest on our show? Call us 844-935-3634, we’d love to hear from you!
Would you like to call in with questions while we are LIVE ON AIR? We answer calls live during every show on Saturday’s from 7AM-8AM, 844-935-3634!

Have you purchased your tickets to our next HOMEBUYER WORKSHOP? If not, click on the following link for more details: mortgagemomradio.com/EVENTS

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