Mortgage rates hit 6 month highs by the end of last week, but they’ve been cautiously recovering since then. The rebound traces a similar pattern in the bond market, as is typically the case considering lenders rely on bonds as the primary ingredient in the interest rate recipe. In simpler, more normal times, bonds would be primarily concerned with economic reports, inflation, and government debt issuance. All of those things still matter, but because of covid, the market is picky about which economic reports it views as important. More importantly, the Federal Reserve’s bond buying program is an even bigger consideration at the moment. It is universally assumed that the Fed will begin reducing its bond purchases soon and that they will announce that intention next Wednesday. Even though everyone
Mortgage Rates Newsletter – Market Analysis
