Mortgage rates¬†fell at their fastest pace of the year¬†following today's rate hike announcement from the Fed. ¬†If you're wondering why mortgage rates fell while the Fed's rate moved up, you're not alone. ¬†Fortunately, the explanation is simple. ¬†
Financial markets had already fully accounted for the chance that the Fed would hike rates today. ¬†They'd even gone a step further an begun to account for a faster pace of future rate hikes. ¬†And it was that future outlook that allowed for our pleasant surprise.
As it turns out, the median forecast among Fed members didn't see the Fed Funds rate ending the year any higher than the previous batch of forecasts (both for 2017 AND 2018). ¬†...(read more)Forward this article via email:¬†¬†Send a copy of this story to someone you know that may want to read it.[img]http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=717877