Posted To: Mortgage Rate Watch
For anyone following interest rates very closely in 2013, the taper tantrum is not easily forgotten. It describes the bond market’s knee-jerk response to the realization that the Federal Reserve would be winding down its bond purchase program. With the Fed almost certain to make a similar announcement next Wednesday, should we be scared yet again? In a word: no . Of course, we’ll need to qualify that. First off, whether or not we should be scared has little to do with whether or not the taper announcement will push rates higher. Perhaps the better question–the one to which we can answer a more unqualified “no”–is as follows: Should we be afraid that next week’s tapering announcement from the Fed will push rates higher?! There are a few reasons we can answer “no” to that question. 1. Past…(read more)
Source: Mortgage News Daily
