Mortgage Rates Hold Mostly Steady Ahead of Fed Announcement

Traditionally, financial markets have been interested in announcements from the Federal Reserve due to the Fed’s policy rate (the Fed Funds Rate) and the line of thinking that might inform its future movement.  Since 2009, things have changed.  With the Fed engaged in large scale bond buying more often than not, it’s the status of those bond buying programs that are of primary interest.  The Fed’s fund rate still matters, but only when there’s a surprising and tangible change to the outlook.
With that in mind, tomorrow’s Fed announcement may bring such a change.  There are two reasons for this.  First, the Fed will most likely announce a faster wind-down of its bond buying programs.  The targeted end date for bond buying will tacitly suggest the time frame in which the Fed is thinking about hiking rates for the first time since cutting them to zero at the start of the pandemic. …(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