Industry News
Mortgage Industry News
Fed to Raise Interest Rates
06/08/2010
In an interview last night, Fed Chairman Bernanke said that the Fed will raise interest rates before there is "full employment", however, officials do not know when that will start. He did say that the unemployment rate will likely stay "high for a while". Bonds are weaker, stocks and commodities are up. Right now, the futures market is pricing in a 74% chance that the Fed keeps rates at .25% through September 21st, 2010. Currently, the Ten Year yield is at 3.18% (3.24% yesterday) and the 2-10 yield spread is at 245bps, flattening 3bps since yesterday morning.
