Sep 152014
 

For more information, please contact me at (512) 261-1542 or steve@LoneStarLending.com.

By G. Steven Bray

After weeks of fairly stable mortgage rates, it was a shock that rates rose last week. This is not a sky is falling moment. Rates are off their recent lows about 1/8%.

The Federal Reserve meets this week, and market analysts attribute the rise to concern the Fed is going to change the wording of its post-meeting statement in a way that could indicate interest rate hikes are going to happen sooner than previously expected. Notice there are a lot of if’s and could’s in that concern, but the financial media has repeated the concern so often that it’s almost certain the Fed statement on Wed will affect rates.

The risk of a big jump in rates is pretty low as other factors still are creating uncertainty for financial markets. And uncertainty tends to push rates down. On the other hand, if the Fed dispels the concern, it’s possible rates could return to their previous lows in the next couple weeks.

Sorry, the comment form is closed at this time.