Janet Yellen has spoken today – but no big shocks:
The possibility of a December hike, around 50 percent before Yellen’s remarks, moved up to 53.5 percent, according to the CME. However, the market continues to doubt anything happening in September, which has just an 18 percent chance.
“Ultimately we think Yellen’s speech really doesn’t give us anything new,” said Chris Gaffney, president of World Markets at EverBank. “They continue to be data dependent and the members still ‘believe’ growth will return in the coming months — but the data continue to prove them wrong so the Fed’s credibility continues to come into question.”
Even if/when the Fed bumps their Fed funds rate, I’m not sure it would change mortgage rates much.