Home Sales Jump 17%; Lenders Need More Inventory; Rates at 1-Year Lows
Mortgage rates fell more triumphantly today, extending their reaction to yesterday's Federal Reserve announcement. The Fed isn't in direct control of interest rates, although the opposite often seems to be true. The free market largely decides rates due to factors like growth, inflation, and supply/demand of bonds. That said, the Fed plays a big role in helping/hindering the natural economic currents. They adjust accordingly to try to keep the economy firing on all cylinders without inflation overheating and without big financial stability risks. Yesterday's adjustment was fairly big and somewhat unexpected. Some of the market reaction may be due to the economic implications of the Fed's apparent concern. In other words, it could be seen as wake-up call about the economic risks underpinning
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