Experts surveyed by Bankrate believed that the Fed would raise interest rates one more time this year, likely in December. Most of those surveyed believed that the Fed would skip rate hikes in September and November; 76% believed that the rate hike wouldn’t occur until the end of the year. However, only 10% of the experts surveyed thought the Fed would hold off until 2018.
A rate hike means the yield on 10-year Treasury bonds will go up – which means rising mortgage rates. Experts surveyed by Bankrate predicted that the 10-year yield will be 2.94% a year from now – about 70 basis points higher than the current yield.
That means higher mortgage rates, so now is the time for mortgage customers to refinance or apply for a purchase loan, Bankrate warned.
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Fed official calls for further rate hikes
Observers warn that there will be at least one more rate hike this year, according to a new survey from Bankrate.