Mortgage rates have been basically flat all week.
It’s been a fairly quiet week on Wall Street. That may end today as the markets are eagerly awaiting minutes from the most recent Fed meeting. We already know that the Fed elected not to raise short-term interest rates but their comments during the meeting may provide clues as to when they intend to. Currently the markets assign a 64% chance that the Fed will raise short-term interest rates at the Dec. 15-16th meeting.
Meanwhile analysts at HSBC bank have cut their yield projections for 2016. Previously they had forecast that the yield on the US 10-year treasury would increase to 2.8% by December 2016. They adjusted their outlook lower to 1.5%. The yield on the US 10-year treasury is currently 2.08%. Mortgage rates tend to track changes in the yield of the US 10-year treasury note.
We may see some volatility following the release of the minutes from the last Fed meeting. Recent releases have not been kind to interest rates so I will maintain a locking bias.
Current Outlook: locking bias