Matt shares his market insights with bond investors
as more interest rate increases from the Federal Reserve and more inflation are likely on the horizon this year.
Jesse Edgerton, an economist at JPMorgan Chase, said the Fed's increased confidence was likely to translate eventually
into more interest rate increases than the three Fed officials predicted.
Homebuyers appear to see the downward trend as temporary, however, and expect to
see more interest rate increases, as well as new home mortgages to get more expensive.
Matt shares his market insights with bond investors
as more interest rate increases from the Federal Reserve and more inflation are likely on the horizon this year.
Over 3 in 4 (76 %) of existing homeowners who express a desire to upgrade to a new home believe there will be
more interest rate increases by the Fed this year.
And even though the difference between the rates on today's five - year fixed and the five - year variable is razor - thin right now, that spread is likely to widen as the economy picks up steam and
more interest rate increases are announced.
In mid-March, the Fed increased interest rates by 0.25 percent and signaled two or
more interest rate increases in 2017.
The chance of two
more interest rate increases this year is increasing, Reuters reports.
76 % believe there will be
more interest rate increases this year, and 71 % go as far as to agree «the era of affordable mortgages are coming to an end».