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Wildcards
Covid plays major influence on monetary policy and supply chains
- Major surprise in Covid could change outlook dramatically
Additional stimulus may fan flames of inflation
- would push stock price temporarily higher
- cause mortgage rates to rise further
- make fed's job of corralling inflation more difficult
Runoff of Fed's balance sheet
- first step - fed to stop purchasing new mortgage bonds and treasury
- Next Step - Hiking fed funds rate
- Fed still buying $70B/ month in mortgage bonds through reinvestments
- If/When fed stops reinvestments, mortgage rates could move higher.
Interest rates forecast
We anticipate mortgage rates to rise along with inflation during first part of they year towards 3.75%
With fed action, softer stock market, and slowing economic conditions, interest rates should head lower in second part of year towards 3%
Forecast - Rates rise towards 3.75% first half of year, decline towards 3% second half as Fed hikes rates.
Strategically, this sets up for a bias of less upfront fees because of a refinance opportunity ahead.
Watch the video and find out more!
Wildcards
Covid plays major influence on monetary policy and supply chains
- Major surprise in Covid could change outlook dramatically
Additional stimulus may fan flames of inflation
- would push stock price temporarily higher
- cause mortgage rates to rise further
- make fed's job of corralling inflation more difficult
Runoff of Fed's balance sheet
- first step - fed to stop purchasing new mortgage bonds and treasury
- Next Step - Hiking fed funds rate
- Fed still buying $70B/ month in mortgage bonds through reinvestments
- If/When fed stops reinvestments, mortgage rates could move higher.
Interest rates forecast
We anticipate mortgage rates to rise along with inflation during first part of they year towards 3.75%
With fed action, softer stock market, and slowing economic conditions, interest rates should head lower in second part of year towards 3%
Forecast - Rates rise towards 3.75% first half of year, decline towards 3% second half as Fed hikes rates.
Strategically, this sets up for a bias of less upfront fees because of a refinance opportunity ahead.
Watch the video and find out more!