Quarter-Point Rate Hike

Jones said that he now expected the funds rate could be as high as 3.75 percent by the end of the year, meaning one more quarter-point rate increase than he had been expecting before Tuesday’s meeting. He said that 30-year mortgage rates, currently near 6 percent, could be at 6.75 percent by year’s end, still a low-enough level that the housing industry should remain strong this year.