By Jann Swason | Mortgage News Daily
Interest rates are, quite naturally, the focus of Freddie Mac’s November Outlook. The company’s Economic & Housing Research Group looked at the potential impact of the interest rate surge since the election and what it called “the near certainty” that the Federal Reserve’s Open Market Committee (FOMC) will raise the fed funds rate at its December meeting.
Over two weeks post-election the 10 -year Treasury note surged by over 50 basis points, closing at 2.35 percent on November 18. The increase was driven by higher than expected inflation and anticipation of the FOMC move -the probability of which the futures market was putting at 92 percent.
