Yellen was confirmed last night to be the next Fed chief, which should be calming news for mortgage rates.  But they haven’t changed much anyway since the Fed announced the $10B taper on December 18th.

30-Year Fixed Rate:

December 12: 4.42%

January 7: 4.62%

Just the mentioning of the taper caused rates to pop up 1/2% in one week at the end of June, so losing only 1/4% after the actual taper should mean a fairly steady road ahead.

Another benefit for the Fed this year is that the volume of MBS has dropped dramatically, so they could spend less without much, if any, effect.  With rates in the mid-4% range, the refinance market has had its head caved in, and mortgage apps are at a 13-year low:

mortgage applications

Mortgage rates should stay reasonable for now, but the market doesn’t really get cooking until next month.  Hopefully we’ll be coming off a big Chargers victory in the Super Bowl!  It could happen – Manning always chokes, and New England has a lot of injuries!

Here’s how a computer simulation figured the winner:

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