Everyone’s got an opinion…

  • November 18, 2013

relax

Today the bond market opened with a rally, improving the price of the zero point rate by .25 points. Light supply of Mortgage Backed Securities caused a shortage in the market causing prices of these bonds to go up and your mortgage rates to go down.

Today, it seems that everyone over at the Fed has an opinion about the current economic policy and given a platform they will express it.

  • William Dudley, an influential U.S. Central Banker, stated at 1 PM today that there is not enough economic growth to warrant a reduction in Quantitative Easing. Someone hand him a microphone.
  • Shortly after Charles Plossner, another influential U.S. Central Banker stated the labor market has improved enough to end asset purchases. He feels the Fed should set a fixed dollar amount in the bond buying program and then bring it to an end. Preach!
  • Janet Yellen added last week that she is monitoring unemployment closely when making a decision to exit the market. Janet, don’t get off your soap box just yet Jobless Claims are announced this Thursday.

There is no economic news on the calendar tomorrow. However, Wednesday is a big day with the FOMC minutes scheduled to be released.

By Lindsey Fediuk, Quicken Loans Capital Markets Analyst

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