Mortgage Rates Edge Slightly Lower. Volatility Potential Increases From Here
Coming into the current week, we expected to see a fair amount of volatility. Last week was volatile in its own right, but in a broadly sideways trajectory. Perhaps it’s more fair to say we’re expecting more of a directional reaction to this week’s data. All that having been said, we have yet to see much of a directional move over the first two days of the week. Monday saw slightly higher rates and Tuesday’s were slightly lower. This keeps last week’s sideways vibes intact and places the onus for bigger movement on the events slated for the upcoming 3 days. The upcoming 3 days are up to the task! The economic reports are more closely watched by the bond traders that ultimately determine rates. Tomorrow, specifically, we’ll also get the latest announcement and press conference from the Fed–always a big deal in terms of rate movement potential. Of course, it is possible that events transpire in such a way that positive and negative offset one another, and rates manage to keep moving broadly sideways. But if there’s a cohesive theme across multiple events/reports, there’s little doubt that rates would start moving with significantly more momentum.