Wednesday, June 14, 2017

Rates Drop to 8-Month Lows; Fed Announcement Changes; Regulatory Reform; Refis Reawaken

Mortgage rates fell convincingly today, though not all lenders adjusted rates sheets in proportion to the gains seen in bond markets (which underlie rate movement). Those gains came early, with this morning's economic data coming in much weaker than expected. Markets were especially sensitive to the Consumer Price Index (an inflation report) which showed core annual inflation at 1.7% versus a median forecast of 1.9%. Core annual inflation under 2.0% is a hot topic --especially today--considering that's one of the Fed's main goals. This afternoon's Fed Announcement did acknowledge the recent drop in inflation, but continued to suggest it was being held down by temporary factors. The Fed also officially unveiled its framework for decreasing the amount of bonds its buying (though it didn't announce

from
http://www.mortgagenewsdaily.com/reports/newsletter/2017/6/14/2842

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