A Fed policy rate hike next week is now almost 100% certain, after recent comments by Fed officials. The Fed anticipates three rate increases in 2017.
The Fed's mandate is to keep strong employment and low inflation. Jobs data this week showed the labor market remains strong, with low unemployment.
Inflation is on the rise, both in the U.S. and abroad, as the economy continues to grow. Inflation pressures mortgage rates and could contribute to higher rates.
Fannie Mae's Home Purchase Sentiment Index for February had five of the six components hit record highs, showing continued strength in the housing market.
Consumer confidence in the housing market hit a new all-time high in February. Of those surveyed, 40% say now is a good time to buy a home.
Although tight inventory remains a problem, there may be hope on the horizon. Twenty-two percent of consumers say now is a good time to sell, also a new high.
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.