Mortgage Rates Fall Ahead of European Central Bank Announcement

Mortgage rates moved moderately lower today, as financial markets positioned themselves for an important announcement from the European Central Bank (ECB) tomorrow regarding the possibility of tapering its asset purchases. Much like the market movement seen in late 2013 following the Fed’s “tapering” message, stocks and bonds (yields) moved in opposite directions (i.e. stock prices higher and bond yields/rates lower). This occurs because central bank purchases are like a rising tide that lifts all ships. The more a major central bank is spending, the better things generally are for both stocks and bonds. This runs counter to the typical intraday stock/bond relationship where yields/rates ten…
Mortgage Rates Newsletter – Market Analysis

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