Mortgage Rate Trend Index Up: Oct. 19, 2016
Will rates go up, down or remain unchanged?
Greg McBride, CFA
Chief financial analyst, Bankrate.com
Odds of a Fed rate hike in December are now 67%, so expect some lift on long-term interest rates between now and then.
Vice president of capital markets, CMG Financial, San Ramon, California
Markets have the chances of the Fed increasing rates in November at almost zero. The chance of a December increase has skyrocketed recently with 9 of the regional banks calling for at least a 0.25-point increase. This has led to a slow uptick in rates over the past month as we head into the traditionally slow time of the year for the mortgage market. Housing starts fell roughly 9% in September, which is close to 12% year-over-year and the most since April of 2011. With the election looming, markets will be moving more than usual in the winter months and could lead to some serious changes as we head into 2017.