interest rates: Inflation Remains Low
- 04/18/14 07:41 AM
While there was a great deal of intra-day volatility over the past week, mortgage rates ended the week with little change, remaining near the lowest levels of the year. Most of the volatility in mortgage rates was caused by big moves in the stock market and by news from Ukraine. Since these events had little impact on the long-term outlook for economic growth or inflation, their effect on mortgage rates was short-lived. Inflation expectations play a fundamental role in determining mortgage rates and influencing Fed policy. The low levels of inflation seen in recent months have been a major reason … (0 comments)
interest rates: Where are interest rates going anyways?
- 03/27/14 01:39 AM
The Fed met last Wednesday however there has been little move in the market in reaction to that meeting. Recent economic data has shown few surprises also. However, one thing that seems to have influenced the U.S. mortgage rates seems to have been the shift in expectation for European Central Bank (ECB) policy, which seems to have helped mortgage rates move a little lower this week. The central banks in Europe and Japan seem to be moving in the opposite direction of the Fed, who is cutting its bond purchases and providing guidance for raising the Fed funds rate. However, … (0 comments)
interest rates: Early 2014 Economic Forecast
- 01/23/14 05:08 AM
The last few weeks of December 2013 proved to be quite ones – with little newsworthy economic news and a light trading volume. Even though the economic data (on average) exceeded expectations – this proved to have little impact on mortgage rates. After months of speculation by investors, on Dec. 18th the Fed announced that it would begin to scale back its bond purchases. Mortgage rates have been kept low , thanks in part to added demand for mortgage-backed securities (MBS) from the fed – so this reduction is not good news for mortgage markets as we continue to expect rising … (0 comments)
While there was a great deal of intra-day volatility over the past week, mortgage rates ended the week with little change, remaining near the lowest levels of the year. Most of the volatility in mortgage rates was caused by big moves in the stock market and by news from Ukraine. Since these events had little impact on the long-term outlook for economic growth or inflation, their effect on mortgage rates was short-lived. 
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