This is mostly a reprint of a piece I wrote earlier today for the MBS Commentary channel. If you read that one, you’ve basically already seen what follows
The Fed announced an emergency rate cut of 50bps today (0.50%). Great! So your mortgage rate could be 0.5% lower, right? Not exactly… Rates definitely moved lower today, and the Fed was definitely involved in that, but more so because their surprise rate cut proved to disillusion financial markets, thus setting off a wave of panic that benefited bonds. Excess demand for bonds means lower mortgage rates (all-time lows, by the end of the day).
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Source: mortgagenewsdaily.comNew feed