A rise in the key interest rate could come “relatively soon,” Federal Reserve Chair Janet Yellen reiterated on Thursday, heightening the probability the Fed will forge ahead with a hike in December, despite initialdoubtsin the wake of Donald Trump’s presidential victory. Mortgage rates, which generally follow the key rate, shot up this week, with the 30-year fixed rate mortgage topping out at an average 3.94 percent from 3.57 percent the week prior.
“This week, the verdict is in—over the last two weeks, the 30-year mortgage rate jumped 40 basis points to 3.94 percent, almost identical to the 39 basis point increase in the 10-year Treasury yield,” says Sean Becketti, Freddie Mac’s chief economist. “If rates stick at these levels, expect a final burst of home sales and refinances as ‘fence sitters’ try to beat further increases, then a marked slowdown in housing activity.”
Yellen’s position—which comes as the dust settles after one of the most contentious elections in history—reinforces the sentiments of Federal Reserve Bank of Philadelphia President Patrick Harker and Federal Reserve Bank of St. Louis President James Bullard, who both voiced support for future hikes this week.
Author:Sheryl Volk Phone: 561-389-8670 Dated: December 6th 2016 Views: 281 About Sheryl: ...
View our latest blog posts in your RSS reader. Click here to access.
We are a full service real estate brokerage with over 100 agents to serve you. Let us be your real estate resource. Regardless whether you need to buy or sell now, or sometime in the future, let us help you. We are no pressure and will always try and help. Contact us at 561-792-3948 now.
"Tue, May 17, 2016
Just wanted to take a moment to recommend an outstanding real estate agent. About a year ago my wife and I looked into buying a new house. We looked at exit realty's website and the next morning we received a call from Joseph Schneider. He is a true professional with an outstanding personality he will instantly make you feel welcome as if you're working with a longtime friend. My wife had unusual requests for the property and Joseph listened and found the property meeting all our needs. He is patient and knowledgeable I would recommend him to all. We purchased our new home in August and since then Joseph has remained in contact, just checking in from time to time. You can look but I doubt you will find a better agent !"