CFAH

With the probability of the Federal Reserve raising interest rates by another two (2) full percentage points by the end of the year having jumped last week, the probability of the Fed adopting a total of nine (9) more quarter point hikes within the next nine months, the probability of which was at 0.0 percent last month, is now over 50 percent based on an analysis of the Fed Funds futures market by the CME Group.

At the same time, the benchmark 30-year mortgage rate, which has averaged roughly 3 percent over the past two years, is nearing 5 percent for the first time since 2011 and could soon be double its all-time low of 2.65 percent last year.

Comments from Plugged-In Readers

  1. Posted by c_q

    pretty sure we’ll see more like 3 or 4 half-point hikes and then they will shift down to quarter-point hikes again.

    note that although lending rates have gone up pretty quickly, savings rates have not been so quick to go up. so someone’s making some $$$ there…

    • Posted by Never In Doubt

      “although lending rates have gone up pretty quickly, savings rates have not been so quick to go up. so someone’s making some $$$ there”

      This is the way.

Comments are closed.

Recent Articles