Best Day of the Year for Mortgage Rates Following Fed

Mortgage rates plummeted today , relatively speaking. While the average improvement of 0.10% might not look like much at face value, it’s the biggest one-day drop we’ve had in 2015, and in a league with very few other players historically. The motivation for today’s movement was twofold, but certainly the biggest factor was the Fed announcement and Yellen’s press conference. In short, markets falsely assumed that the recent run of super strong Nonfarm Payrolls numbers (the “jobs report”) would materially accelerate the Fed’s rate hike outlook. Beyond that, too much focus had been placed on the word “patient” as an important indicator of the Fed’s stance. Not only did we see a Fed that looks …
Mortgage Rates Newsletter – Market Analysis

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