It looks as if the Fed will pause at the August 8th meeting - which means the cost to finance business and personal goods and services will finally stop climbing. Including rates on Home Equity Lines of Credit! Why are they likely to pause? Last week's news shows the US economy is indeed slowing, with Gross Domestic Product (GDP) numbers for second quarter coming in lower than expected…and less than half of last quarter's number. And this low number confirms Bernanke's recent comments that the economy is slowing. And it all makes sense - the reason for the slowdown is apparently from the relentless barrage of Fed rate hikes, designed to slow things down and prevent runaway inflation, and it appears the Fed's strategy worked.
Quoted from: The Mortgage Market Guide
