Mortgage Rate Predictions For The Next 30 Days (December 17, 2009)

With consumer confidence on the mend, net job gains nearing zero, and Retail Sales rebounding, Wall Street had bid up mortgage rates this month. Mostly, the trading was just jockeying for position ahead of the December 15-16 FOMC meeting. Investors were worried that the Fed would blink; that it would change its economic outlook for 2010 and have to start raising the Fed Funds Rate sooner than forecast; that inflation fears would return. Instead, none of that happened.