December marks seven years since the Federal Open Market Committee cut the target for its benchmark federal funds rate to nearly zero.
The Great Recession technically ended six months after the Federal Reserve’s dramatic interest rate cut, though to say the subsequent recovery has moved at a glacial pace would be an understatement.
But as a meaningful economic recovery appears to be finally taking hold, all eyes are on the FOMC amid speculation that it may soon raise rates. That watershed moment, whenever it comes, will necessitate a re-evaluation of many aspects of the “new normal” that have taken hold since the Great Recession.
Case in point: the adjustable-rate mortgage. The product, popular during periods of rising interest rates and home prices — and vilified for contributing to excesses that precipitated the housing crisis — has fallen out of favor among lenders and consumers.
But ARMs may soon be […]