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Originators should prepare for at least one Fed hike this year

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Mortgage Professional America | 23 Jul 2015, 08:50 AM Agree 0
Add one major bank to the growing chorus of voices predicting a Fed hike this year – but when can originators expect that inevitable move?
  • Peter Knight | | 23 Jul 2015, 11:08 AM Agree 0
    Yellen’s current rate hike timeline

    Current rate for March 2016 delivery (ZQH16) 0.3800%, contract value = $1,583

    Dec 2015 = 0.6250%, contract value = $2,604 or +54.49%
    Mar 2016 = 0.9394%, contract value = $3,914 or +147.25%
    Dec 2016 = 1.8750%, contract value = $7,812 or +393.49%
    Dec 2017 = 3.2500%, contract value = $13,541 or +755.40
    1954-2014 average = 5.10%, contract value = $22,250 or +1,305.55%

    The Exchange has a wealth of information to help all get up to speed before the hikes engage see https://peterknightadvisor.wordpress.com/2015/07/13/how-to-trade-short-term-rates-higher/
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