Holding the line on interest rates can be good for originators overall, but might have some negative impact in markets with tight inventory
The Fed will likely hold the line on short-term interest rates at its meeting next week
Deutsche Bank will shell out more than $1.63bn to settle claims brought against it for MBS sales to Fannie Mae and Freddie Mac
Mortgage rates are set to rise as the Fed cuts back its mortgage-backed securities purchases. The question is, how fast does the Fed intend to wind the bond buys down?
Fed Chairman Ben Bernanke said in a press conference Wednesday that the Fed would most likely continue to wind back purchases, $10bn at a time over the next several meetings of its rule-making committee. However, he said, that decision was more of a flexible guideline than a hard-and-fast policy
What does the taper mean for mortgage rates? Well, it all depends on how fast the Federal Reserve winds down the rest of its bond-buying program
Fixed mortgage rates rose slightly this week leading up to the Federal Reserve’s decision to wind back its bond-buying program
While many originators aren't thrilled with the timing of the taper, it's not the end of the world