The Federal Reserve is unlikely to raise interest rates when it meets today, LendingTree Chief Economist Jim Svinth said on Monday.

The Federal Open Market Committee will discuss the economy and the Fed funds rate of 5.25 percent.

"Despite turmoil in the credit markets and softening employment data, the Fed will hold tight at tomorrow’s meeting keeping the Fed funds rate at 5.25%. However, we are likely to see a change to the anguage acknowledging the current U.S. economic situation,” Svinth said.

"If the mortgage and housing markets do not stabilize by the fourth quarter the odds of a rate reduction in 2007 will increase,” he added.

The current interest rate has held at 5.25 percent for the past year.