We shouldn't give a lot of credit to projections of three more interest rate hikes by the Federal Reserve this year. No voting member of the Fed has said that.
KTRH Money Man Pat Shinn says there are too many measurements being factored in to be precise at this point.
“Right now,” he says, “Fed Funds Futures contracts are pricing in two more rate hikes.”
We're talking about the Fed's “overnight rate.” Shinn points out, that really has nothing to do with mortgage rates or the interest you pay on a car loan.
“In fact, on the March 15th meeting, the Federal Reserve raised interest rates,” he says. “Longer-term interest rates actually went down that day.”
Shinn says mortgage rates are determined by the open market.interest rate