Mortgage Rates Start Lower, but End Higher After Fed Announcement
Mortgage Rates began
the day lower, with several lenders releasing their best rate sheets in
nearly 5 months. The day progressed well in the secondary mortgage market with
MBS prices (the "mortgage backed securities" that most directly affect rates)
rising steadily into the Federal Reserve's policy announcement. When MBS prices
move higher, rates move lower.
The Fed wasn't seen as likely to change monetary policy in any way at this meeting, but market participants may have justifiably been expecting a more cautious tone than they got. The Fed even removed verbiage alluding to the risks associated with recently tight financial conditions. Bond markets, including MBS, weakened quickly following the announcement, and many lenders revised rate sheets to fall more in line with yesterday's.
This is interesting because yesterday, we'd looked forward to today's data and events as holding the most promise for breaking the ongoing trend of "unchanged" (or close to it) rate sheets. As it happened, we did get a break of that monotony this morning, but rates returned to the same levels in the afternoon. As such the most prevalent Conforming 30yr fixed rate remains at 4.125%.
Remember that you can always contact us at 314-744-7806, or click on the link below:
Call The Money Man
The Fed wasn't seen as likely to change monetary policy in any way at this meeting, but market participants may have justifiably been expecting a more cautious tone than they got. The Fed even removed verbiage alluding to the risks associated with recently tight financial conditions. Bond markets, including MBS, weakened quickly following the announcement, and many lenders revised rate sheets to fall more in line with yesterday's.
This is interesting because yesterday, we'd looked forward to today's data and events as holding the most promise for breaking the ongoing trend of "unchanged" (or close to it) rate sheets. As it happened, we did get a break of that monotony this morning, but rates returned to the same levels in the afternoon. As such the most prevalent Conforming 30yr fixed rate remains at 4.125%.
Remember that you can always contact us at 314-744-7806, or click on the link below:
Call The Money Man
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