Mortgage Rates Give Back Yesterday's Improvement

Mortgage rates fell significantly yesterday, extending a reaction to the Federal Reserve’s announcement and press conference from Wednesday.  The Fed was essentially much more concerned with risks to the economic outlook than investors expected them to be.  When the Fed is concerned, they tend to not be hiking rates and if things get bad enough, they may also consider buying bonds with some of the cash they have on hand from previous bond buying exploits.
All of the above was very good for rates, but it also put very big emphasis on the upcoming economic data to shed light on just how justified the Fed’s concern may be.  Today’s economic data ended up being so good that it wouldn’t have been a surprise to see the Fed pop out from behind the curtain this afternoon and say “just kidding!”  In other words, the Fed was super worried, and the data suggested no cause for concern….(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