60 days ago, markets put a 36% probability that the Fed would lower the Fed Funds Rate by March 2007. Today, that probability is zero. If you’re wondering why mortgage rates have ascended so quickly, that’s part of your answer — inflation expectations are changing.
Rates increased again on Monday and today the market catches its breath. Enjoy the calm and consider locking in your mortgage rate because beginning Wednesday morning at 8:30 A.M. EST, the data onslaught begins.
With several key inflation figures and the Federal Open Market Committee will concluding their two-day meeting, mortgage rates figure to bounce around like a lottery ping-pong ball clear through Friday.