Posted To: Mortgage Rate Watch
Mortgage rates fell modestly to begin the week following several weaker-than-expected economic reports. Economic data affects rates by motivating investors to seek out or avoid risk. In general, stronger data increases risk tolerance, and weaker data increases the demand for safer investments such as Treasuries and Mortgage-Backed-Securities (MBS), which dictate mortgage rates. Higher demand means higher prices and lower rates, all things being equal. In the bigger picture, however, today’s gains were modest, and keep market levels in a sort of holding pattern they’ve been in for 4 days now. It’s not uncommon to see this happen leading up to a big-ticket event like the FOMC (“The Fed”) Announcement coming up on Wednesday. Investors are looking for clarity on the Fed’s plans regarding raising…(read more)
Via:: Mortgage Rates Slightly Lower; Volatility Ahead
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