Mortgage Rates Holding Near All-Time Lows Ahead of The Fed

Mortgage rates were mixed today, depending on the lender.  The bond market–the driving force behind interest rate movement–was stronger yesterday.  Many mortgage lenders thought it was strong enough to justify mid-day improvements in mortgage rates.  Those lenders were the ones generally offering modestly higher rates today.  Conversely, lenders who abstained yesterday were able to offer slightly better terms today.  All told, the average lender is roughly unchanged with 30yr fixed rates that remain very close to true all-time lows.
Tomorrow brings the week’s biggest risks with important economic data in the morning and an even more important announcement from the Federal Reserve in the afternoon.  Although this is a regularly scheduled Fed announcement, there’s been ample speculation about a change to the Fed’s bond buying program.  The change in question involves adjusting the balance of bond purchases in favor of longer-term debt.  In other words, the Fed wouldn’t spend any more money, but they’d be buying longer-term bonds.  This would have a positive effect on longer-term rates like mortgages and 10yr Treasury yields, provided the Fed pulls the trigger….(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