Here's Why the Fed Isn't Hiking Rates Anytime Soon

NEW YORK (BankingMyWay) -- Mortgage interest rates are still below the 4.50% line at 4.40% this week, according to the BankingMyWay Weekly Mortgage Rate Tracker.

That's good news for homebuyers and the home sellers looking to move their properties. Low rates mean a wide open real estate market, with more buyers clamoring for more homes. That reduces inventory and allows homes to sell more quickly and for higher prices as demand rises.

But lower interest rates aren't good for bank savers. Checking account rates are mired near zero at 0.046%, unchanged from last week, according to BankingMyWay, and bank certificates of deposit aren't that much stronger. The average two-year CD is returning a paltry 0.329% this week, up slightly from the last week of March.

That's been much the case for the better part of six years now, as the Federal Reserve keeps lending rates near zero percent so credit pipelines stay open and people and businesses go on borrowing.

In a March 31 speech at the 2014 National Interagency Community Reinvestment Conference in Chicago, newly minted Federal Reserve Chairwoman Janet Yellen indicated strongly the rate picture would stay the same, leaving bank savers wondering what they have to do to catch a break in this economy.

Yellen's speech focused on job creation, a hot-button issue among the electorate. Gallup reports that only 28% of Americans say "it's a good time to look for a job right now," and job creation is regularly at the top of the list of Congressional priorities among Americans.

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