Mortgage Rates are under pressure again after Fed Chairman Powell’s Jackson Hole speech as they mirror comments from July 27th. The bond market has so far accurately priced in higher yield levels over the course of the next month (Fed Meets to raise rates again on 9-20 & 9-21), therefore today’s volatility I believe is tied to the “unknown” or just how much will the Fed Raise in 30 days. Another 75 bps? It all depends on inflation falling to 2% and an increase is job cuts to cool the economy.
Bottom Line: interesting times ahead with a lot of rate volatility but overall bigger picture points to rates heading higher.
SOURCE & AUTHOR |
Keith Murphy Branch Manager – Essex Mortgage NMLS #330827