Posted by: Larry Stevens | October 29, 2014

Broad Consensus That Fed to Announce end of QE3

Real Estate Finance Insights

Mortgage rates were mostly sideways today with very few lenders changing rate sheets noticeably from yesterday.  As such, the most prevalent conforming 30yr fixed rate quote remains 4.0% for top tier borrowers.  It continues to be the case that paying points upfront in exchange for a lower rate may make sense to some borrowers at these levels.  There’s nothing inherently bad or good about that strategy.  It’s simply a trade-off between upfront costs and monthly payment.

The bond markets that underlie mortgage rate movement have arguably been hunkering down for a big day of volatility with tomorrow’s big Fed Announcement.  Even though there is broad consensus that the Fed will announce the end of QE3 asset purchases, there is plenty of uncertainty and anxiety regarding the other potential verbiage changes in the official policy statement.  In other words, markets are now ready to make a bigger move regardless of what the Fed…

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