Market speculators are all but certain that a rate hike by the Federal Reserve is imminent according to reports. Strong employment numbers and continued economic growth, economists say, is enough to prompt Fed officials to move to increase short-term interest rates during its mid-December meeting.
As of earlier this week, CME Group, which tracks fed funds futures placed the odds of a rate hike at 90.2 percent. Economists grew even more confident in their predictions following a statement by outgoing Federal Reserve Chair Janet Yellen in which she said the central bank is intending to normalize monetary policy in the U.S. by continuing to gradually increase rates – a plan first put into effect in December 2015 when Yellen led the charge for the first increase in the benchmark rate since June 2006.
While the Fed rate is key for much consumer debt, mortgage rates more closely follow the yield on 10-year Treasury notes. Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4 percent while 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.