Mortgage Rates Only Modestly Higher After Fed Announcement

Mortgage rates were fairly flat heading into today’s important Fed announcement.  Despite arguably receiving bad news, they didn’t move too much higher by the end of the day.  
What was the bad news?
In short, the Fed is doubling the pace of “tapering.”  That means it will be reducing the amount of bonds it has been buying twice as quickly.  Those bond purchases are generally associated with lower rates although the financial market tends to move well in advance of this type of policy change because the Fed tends to telegraph it quite well.  Indeed, if there’s one reason that rates didn’t freak out today, that would be it.  The writing has been on  the wall for more than 2 weeks now….(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