Expect Rising Mortgage Rates in December

Mortgage Rates Rate Volatility

 

The average cost of a Thanksgiving meal (serving 10) this year is $49.87. That’s down from $50.11 last year, according to the American Farm Bureau Federation.

 

Stocks continue to rise, once again hitting new all-time highs, while bonds continue to see yields increase. Rising bond yields contribute to higher mortgage rates.

 

It is now 100% expected that the Fed will increase policy rates in December. Forecasts for next year already have the Fed raising policy rates 3 more times.

 

Existing home sales rose in October to their highest levels in more than 9 years. It’s yet to be seen if rising mortgage rates can slow down demand in November.

 

New home sales were down slightly in October, but it’s expected to be only a temporary setback. Sales were still 17.8% higher than the same time last year.

 

Median home prices dipped 1.35% from September to $232,000 for existing homes. However, prices were still 6% higher than October of last year.

Source:  New Penn Financial, LLC

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