Mortgage Rates are better this week due to Fed’s Jackson Hole announcement that the much anticipated tapering (buying less mortgage and treasury bonds) will be put on hold at least until the end of the year. This is significantly GOOD NEWS to bond investors who buying hand over fist and pushing up bond valuations/lowering yields as the Feds liquidity/buying remains intact. This morning, more good news for rates (remember that economic uncertainty is GOOD for rates and capital flows to bonds for protection, which again pushes up bond prices/lowering rates) as the NFP report showed 235,000 new job created vs 720,000 anticipated.
Bottom Line: This is a HUGE miss and shows the economy is still being compressed due to inflation and increasing COVID cases. This news should lead to stable or better mortgage pricing into next week.
SOURCE & AUTHOR |
Keith Murphy Branch Manager – Essex Mortgage NMLS #330827