“I think they probably (will) raise rates, but I don’t think it really matters in the end,” John O’Connell, chairman and CEO of Davis Rea, told Canadian news publication Business News Network.
There is a 30% chance of a rate hike, according to the futures market.
O’Connell noted that there has been so much chatter around this rate and that will continue regardless of what decision is made Thursday.
“Whether they raise rates or not, the markets are going to react one way or the other and they’ll be talking about (a rate hike) again down the road,” he said.
For their part, originators have certainly benefited from low rates, which – along with housing price recover – have drawn clients to the market. But one industry player argues it’s time for the Fed to increase its rate target.
“I would prefer it if the Fed raised it ¼% and get us back on track to a more normalized economy rather than a manipulated economy,” Jon Grabow of Lake Region Mortgage Corporation told Paydayloans247. “The quantitative easing was a manipulation and the economy will benefit in the long-run if it is normalized.”
Many pundits have chimed in and offered arguments for maintaining the current target of 0.25%, which hasn’t seen an increase since 2006.
"I do not see a compelling reason for liftoff," said Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities and the former chief economist for Vice President Joe Biden, according to Politico.
With all the pertinent economic data that would influence the Fed having already been released, it’s still tough to ascertain which decision the bank will make.
"The jobs picture says ‘yes,’" said Brookings Institution senior fellow and former Federal Reserve Vice Chairman Donald Kohn, according to Politico. "The inflation picture and some of the financial market developments say ‘no.’ It's a very close call."
The Fed is set to make its rate decision this Thursday, but the jury is still out on just what the central bank will choose to do.