Mortgage Rates Slightly Higher to Start Volatile Week

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Posted To: Mortgage Rate Watch

Mortgage rates continued slightly higher today, after hitting 1-month highs late last week. In general, the mortgage rate environment has been under pressure since last week's Fed Announcement. To reiterate a frequent point, the Fed doesn't control or set mortgage rates. That said, MBS (the mortgage-backed-securities that most directly influence rates) do tend to move in concert with US Treasuries and both tend to move toward higher rates when the Fed is expected to tighten policy. In other words, markets are "pricing-in" a rate hike for December after last week's Fed announcement. That means by the time the Fed actually hikes its policy rate, mortgage markets (and other bonds) will already have moved toward higher rates. In fact that's one of the key reasons we're not currently at all-time...(read more)

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Source: http://www.mortgagenewsdaily.com/consumer_rates/525788.aspx

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