Mortgage rates¬†were noticeably higher¬†to begin the day, but most lenders offered mid-day improvements after the release of the hotly-anticipated Fed Minutes (from the March 14-15 meeting). ¬†For those that don't necessarily follow every little movement in the bond market, it's ironic that tend to move down just after the Fed releases big news that should imply higher rates.
For example, in the case of the past 3 Fed rate hikes, day-to-day mortgage rates had been moving higher leading up to the hike and then generally moved lower after the hike was announced. ¬†If you've heard the phrase "buy the rumor, sell the news," that's what this paradoxical movement is all about. ¬†Market participants are so tuned-in to what will PROBABLY happen that they've fully accounted for what ACTUALLY happens. ¬†Widespread consensus on Fed rate hikes results in widespread efforts to push rates higher. ¬†More often than not, markets overshoot the goal and rates fall after the hike is confirmed....(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=726284