Predicting What The Fed Will Do Next And How It Impacts Mortgage Rates
The graph above shows how the market’s expectation of the Fed have changed since March. The colored lines represent the Fed Funds Rate as set at the FOMC’s August meeting. The x-axis represents time The y-axis represents the percent likelihood of an event happening So, moving from left-to-right, we can see how the markets gamble on the Fed Funds Rate. On March 13, there was an equal probability — 30 percent — that August’s Fed Funds Rate would be the…
Original post by Dan Green