After rising for almost nine straight weeks, mortgage rates (on average) decline this week to 4.09%. Hoping that this trend continues; cross your fingers for luck.
Yesterday, the released Fed minutes showed that the FOMC is concerned with the next administration’s fiscal policy. The promise of higher growth by Trump, et al.’s future administration may lead the Fed to continue to tighten monetary policy. However, with the rotation of Fed Open Market Committee Members becoming fully fledged, voting members being more dovish that hawkish, they might be more reluctant to do so. Remember that they committed to three rate hikes in the year 2017 at their last meeting. So maybe their fingers are crossed for luck and maybe they are crossed because they don’t intent to keep their three-hike promise. The market is pricing in only two interest rates hikes this year. Time will tell what lies in store.