Rates Face Big Volatility Risk Next Week

Mortgage rates enjoyed a pleasantly flat week despite some volatility in the underlying bond market.  The day-to-day changes in Treasuries and Mortgage-Backed-Securities (MBS) were noticeable, but they all took place inside the range of values seen last Wednesday on Fed day.  In other words, the bond market (which dictates rates) digested the Fed’s message and is now waiting for the next shoe to drop.  When it does, we’re highly likely to see the current range give way to the next bout of strong momentum.  
The shoe in question is next week’s economic data.  After all, the Fed’s message last week was that it was prepared to cut rates if the economic data justified it.  …(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