by Bill McBride on 11/04/2015 06:01:00 PM
Wednesday, November 04, 2015
From Matthew Graham at Mortgage News Daily: Mortgage Rates Back to 4 Percent After Yellen
Mortgage rates maintained their upward momentum today, rising to the highest levels since late September after Janet Yellen confirmed the Fed's rate hike outlook. Bond markets (which include the mortgage-backed securities that most directly affect mortgage rates) began adjusting for that outlook last week after the Fed announcement. Markets saw a roughly 1 in 3 chance of a December rate hike before that announcement, and better than 50 percent afterward.Here is a table from Mortgage News Daily:
[In testimony today] Yellen confirmed the shift in tone represented by last week's official announcement. Bottom line: the Fed looks pretty serious about hiking in December. That confirmation was worth a bit of extra pain for bond markets, hence the move higher in mortgage rates. The average lender is now back to 4.0% on conventional 30yr fixed quotes, with only the aggressive few offering anything in the high 3's.
Posted by Bill McBride on 11/04/2015 06:01:00 PM