Rates Getting Close to 3-Year Lows; CoreLogic Sees Home Prices Staying Strong
Mortgage rates moved lower today , continuing the recent trend of improvement. Investors are feeling more cautious after Fed Chair Janet Yellen expressed a surprising amount of caution around the topic of hiking rates and providing economic accommodation. The Fed Funds Rate is a short-term rate that does not directly dictate mortgage rates. That said, easier monetary policy tends to benefit the longer term bonds that drive mortgage rates, unless those low Fed rates actually manage to juice the economy and perhaps even inflation. But right now, nothing of the sort is happening. Several major financial firms sharply downgraded Q1 GDP forecasts today, as did the Atlanta Fed's popular GDPNow model. Current forecasts are getting dangerously close to zero growth. Couple that with investor anxiety
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