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Fed decides to keep the interest rate near zero [Video]

Posted on Friday, September 18, 2015 at 3:40:00 PM

After lengthy discussion over whether it would be good for the U.S. economy if the Federal Reserve raised interest rates, a decision was eventually reached, and it was a no.

While the Fed is likely to bump up its benchmark interest rate before the end of the year, global economic turmoil made the choice a bit more difficult, and experts would like to see how world, as well as the domestic economy, handles everything before lifting the rate. The bank has two more meetings scheduled this year, in October and December, either of which could bring an interest rate liftoff. For now though, the benchmark rate will remain close to zero. 

The interest rate in question serves as a basis for others in the U.S., including mortgage rates. Lenders had anxiously awaited what the Fed would decide, since an increase in the benchmark interest rate would bump up mortgage rates, and potentially drive people away from residential financing. 

For now though, rates will likely remain close to what they have been for some time, which means potential homebuyers have at least a month to cash in on affordable mortgages before interest is hiked up.