Mixed Day Leaves Rates Slightly Higher; Thoughts on Fannie's Rental-to-MBS Pilot Program

Mortgage rates were noticeably lower this morning as bond markets responded favorably to the important jobs report. While the headline job growth was stronger than expected (typically bad for rates), wages came in much lower than expected and were revised lower for the previous report as well. That was enough for most lenders to offer lower rates with today’s first set of rate sheets. Bond markets (which underlie rate movement) stayed strong throughout the morning. Things changed in the afternoon when a member of the Fed (Williams) said the Fed may hike in March. Perhaps even more damaging was Williams’ mention of the Fed moving closer to ending its policy of reinvesting the interest it earns on its bond portfolio. Those reinvestments are worth a lot in terms of low rates. Bonds then lost everything
Mixed Day Leaves Rates Slightly Higher; Thoughts on Fannie's Rental-to-MBS Pilot Program
Mixed Day Leaves Rates Slightly Higher; Thoughts on Fannie's Rental-to-MBS Pilot Program

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