Why Should One Consider Refinancing Their Mortgage Now? Refinancing a mortgage is a golden opportunity to lock in today’s low interest rate for the next 15 or 30 years. While interest rates now
No Surprises From The Fed
Headlines about the U.S. election caused some volatility for mortgage rates over the past week. The Fed meeting and U.S. economic data had little impact. Mortgage rates ended the week a little higher.Investors have been reacting to fresh news about the two presidential candidates. For the most part, news that favors a Clinton victory has been good for stocks and bad for bonds. News that favors a Trump victory has had the opposite effect. Investors are not comfortable with uncertainty, so volatility related to the election is likely to continue.As was widely expected, the U.S. Fed made no policy changes on Wednesday. The Fed statement suggested that Fed officials are closer to raising the federal funds rate than they were at the last meeting on September 21. According to the statement, Fed officials are waiting for "some further evidence" of continued improvement in the economy. According to futures markets, investors think there is over a 70% chance for a rate hike at the December meeting, nearly unchanged from before the release of the Fed statement.The statement also noted that inflation has increased "somewhat" since earlier in the year. The recently released core PCE price index, the inflation indicator favored by the Fed, was 1.7% higher than a year ago, matching expectations. Core PCE has been climbing at a very slow pace in recent months. According to the Fed statement, Fed officials expect that inflation will rise to their target level of 2% "over the medium term."
David is a seasoned real estate professional, specializing in residential sales, rentals and investment properties. David is a 15 year resident of the New Jersey Gold Coast, with the local knowledge n....
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