Thanksgiving Week Starts with Modest Rate Jumps
The Thanksgiving week is generally characteristic of volatility in the bond markets, which strongly influence mortgage rates. Today, most lenders reported modest increases, while others were unchanged. We can likely expect more movement on Tuesday, and Wednesday has historically been the day of greatest activity.
The Fed’s rate hike that is likely approaching next month remains one of the big influences in the housing market. After seven years of near-zero rates, the central bank shall soon begin withdrawing some of its stimulus programs, which will likely have a strong effect on real estate. Fortunately, most people don’t expect too much of a shock in the system. According to the chief economist of Zillow, we will likely see a gradual increase of rates over time.
Meanwhile, home prices have been growing at the fastest pace since November of 2014. Between the prices and the low inventory, the seller’s market is still very much in effect. The Fed rate hike may influence this, though hot, coastal markets like Seattle are unlikely to slow down too much.
