While mortgage interest rates are more affected by 10-year Treasurys than they are by the Federal Reserve's overnight funds rate, the latter does affect the former. The chances for a Fed hike next month are looking stronger. MarketWatch reports:
Federal Reserve Vice Chairman Stanley Fischer on Friday signaled his support for gradual interest-rate hikes.
“The case for removing accommodation gradually is quite strong,” Fischer said in a speech via videoconference to a symposium sponsored by Chile’s central bank.
The Fed was “reasonably close” to meeting its target of a stable 2% inflation rate and full employment, which justifies action, he said.
Fischer did not lay out the precise timing for any moves, and cautioned that “the future is uncertain and that monetary policy is not on a preset course.”