Rates likely to increase in December
Prior to the
October’s Job report the percentage of financial analysts that thought a rate
increase for the December Federal Reserve meeting was about 35%. After that
report it went up to 70%. Now with unemployment near 5% and core inflation
figures about to come out at 2% the increase is just about a lock.
We have seen the
mortgage rate volatility increase in recent weeks as well. We are up and
trending to stay that way. Up about 12-25 basis points from the beginning of
October, and that is in direct proportion to the expected 0.25% increase in the
FEDs short term lending rate.
This is a good
sign for the health of the real estate market and overall economy as a whole.
-Kris
No comments:
Post a Comment