Although mortgage rates managed to move lower in the immediate wake of the Fed rate hike, they’ve since moved back up to the highest levels since July. This casts doubt as to the direction of the first dose of mortgage rate momentum in 2016. Or worse yet, it removes some of the doubt that currently exists about rates calmly following the Fed Funds Rate higher.
Source: Kevin Litwicki Universal Lending
Housing Market Has Plenty to Consider in 2016
2015 was a year of transition for the mortgage and housing industries. Even the very core of the global financial system was in transition if we consider the fact that the year ended with the first Fed rate lift-off in more than 10 years.
Source: Kevin Litwicki Universal Lending
New Mortgage Rules Already Leaving Mark on 2015
Last week I said that the Fed had done a great job of making sure markets were fully prepared for the upcoming rate hike. That’s no great mystery, but it is something that needed to be seen to be truly believed. Markets were so prepared, in fact, that mortgage rates moved lower on the day of the Fed rate hike, and substantially lower the following day.
Source: Kevin Litwicki Universal Lending
Fed Finally Hikes. Mortgage Rates Fall. Wait… What?!
The Fed spent the last several months making sure markets are fully prepared for a rate hike in the December meeting. They’ve done a great job too. The consensus for a hike has never been higher, as measured by Fed Funds Futures (where traders bet on the probability of various Fed Funds Rate levels) or by surveys (where more than 90% of economists see a rate hike next week).
Source: Kevin Litwicki Universal Lending
Fed Rate Hike Next Week. Do We Care?
For the past several weeks, mortgage rates had been in consolidation mode, but volatility showed up in a big, unpleasant way today.
Source: Kevin Litwicki Universal Lending
Mortgage Rate Volatility Back From Vacation