Week of: Monday, December 7, 2015
Present Market ConditionsMortgage rates continued lower at a decent pace today, further eroding the big move higher seen last Thursday and market look ahead to the next big event, Next week’s Fed Meeting.There are no economic reports being released today. Stocks closed lower being dragged down by plunging oil prices.
ExpectationsThe two-day Fed meeting kicks off next Tuesday the 15th and ends on Wednesday with the monetary policy statement at 2:00pm ET. Fed Fund Futures show an 80% chance of a Fed Fund Rate hike next week, most likely a 0.25% raise. In the absence of a surprise negative shock between now and then, it looks like the Fed must raise rates or lose credibility since they have been signaling a rate hike all along.
GuidanceNow with today's additional day of strength, last Thursday's spike increasingly looks like an isolated incident, In the bigger picture, rates had been at a crossroads, trying to determine if they would move back to 2015 highs or if the late summer swoon was merely the first wave of a longer campaign. Please maintain contact with us!
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