Polar vortex can’t freeze rates in this week’s Markets in a Minute!

For the Week Ending December 16, 2016 Please enjoy this quick update on what happened this week in the housing and financial markets. As expected, the Fed raised policy rates 0.25% at this month’s FOMC meeting. Bond yields jumped on the news, pressuring mortgage rates higher. The U.S. dollar is at the highest level since 2003, and stocks continue to hit all-time highs. Strong economic activity contributes to mortgage rates increasing. The Fed is expected to continue to raise policy rates in 2017, possibly up to three times. Rising inflation and a tightening job market support this speculation. Rising mortgage rates aren’t dampening builders’ enthusiasm for the housing market. The NAHB housing market index rose to a 9-year high in December. The HAMP mortgage program expires December 31, 2016. It is being replaced with a new payment reducing Flex Modification foreclosure prevention program. Rising mortgage rates are not curbing demand, as inventory remains stubbornly low. Constrained supply is expected for at least 4 more years, according to NAR.     Polar Vortex – what weather people say when they’ve exhausted every other possible way of saying “it’s freaky cold outside.” Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.   Barry Botwin, Waterstone Mortgage, Senior Mortgage Advisor, NMLS # 216724 (407) 645-6315, bbotwin@waterstonemortgage.com

The post Polar vortex can’t freeze rates in this week’s Markets in a Minute! appeared first on Orlando Florida.

source http://www.orlandoflhomesandland.com/polar-vortex-cant-freeze-rates-weeks-markets-minute/