Mortgage rates fell to new 3-Month lows today. That makes this the 11th straight day where rates have held steady or moved lower.
As we noted yesterday, the burden of proof is on the scheduled economic data when it comes to determining whether or not the Fed is likely to move back toward its previous stance on tapering. In simpler terms, if the data says the economy isn’t improving enough, the Fed is justified in continuing to hold off. As long as they hold off, interest rates benefit in general. This was generally the case today as the economic data was roughly in line with expectations. Tomorrow is another chance for the same thing to happen, but be aware that if the data is stronger than expected, rates will likely move higher.