The Stillness of Winter

It’s been a very quiet news week for factors impacting mortgage interest rates.  Mortgage bonds have been flat since the days leading into Thanksgiving, and I anticipate that trend continuing until the 14th of December.  Next Wednesday is the conclusion of the Federal Open Market Committee meeting, where it is anticipated that the Fed will raise interest rates.  When they did so last December it was a complete surprise, sending stocks into a tailspin and actually lowering the value of long term bonds–which dropped mortgage rates.  This time around it’s a given and should not have the same effect.  In fact, it just might have the opposite effect, which will cause interest rates to rise further.