Market Stabilizes at October’s Highest Rates
Friday closed with the highest mortgage rates for the month so far. Fortunately, these rates still represent an improvement over most of September. These rates remained steady through Monday, as is normal for a three-day weekend. What to expect as we move forward, though, remains very much in question.
The stocks and bonds markets are both at a significant crossroads, both with the potential to either move back into the range seen in June and July or continue a long trend of downward-moving yields and stock prices. There may be some risk for rates to quickly move higher, if we can take the Fed at their word and ignore the weak trends in global economic growth. The Fed seems convinced that the economy will allow for a rate hike by the end of 2015, but many critics are saying otherwise.
All things considered, it may be too optimistic to expect rates to dip any lower than they currently are; anyone looking to float should expect to play the long-term game, and be prepared to pay more if you turn out to be wrong.
