Mortgage rates were surprisingly steady today as the bond market reacted to a new policy announcement from the Fed. Perhaps “reacted” is the wrong word considering the market’s response. Specifically, the bond market (which dictates interest rates on mortgages and beyond) was hard to distinguish from most any other random trading day. That’s nothing short of impressive given what transpired.
So what transpired? That requires a bit of background, but let’s make it quick.
Today’s announcement advanced the verbiage that suggests the Fed will begin tapering at the next policy meeting in November. Then, in the post-meeting press conference, Fed Chair Powell bluntly and explicitly confirmed the Fed is indeed planning on announcing the tapering plan at the next meeting unless the next jobs report is surprisingly bad. …(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: mortgagenewsdaily.comNew feed