Mortgage rates are better this morning.
As expected the Fed did not announce any adjustments to monetary policy in it’s policy statement yesterday. However, the Fed’s comments did help mortgage rates to improve. In the statement the Fed acknowledged that inflation is getting too low. The threat of deflation is very concerning for the economic outlook but does help long-term rates move lower.
The Fed’s comments are helping drive demand for fixed income securities including mortgage-backed bonds and US Treasuries. Without any significant economic data until tomorrow I will shift my outlook to floating.
Current outlook: floating