Posted To: Mortgage Rate Watch
All eyes were on the big jobs report this week. Traders were anxious to see if it would be strong enough to accelerate the timeline for key policy changes that would greatly impact rates. The bond market and indeed many homeowners remember 2013’s taper tantrum all too well. For those who need a refresher, the taper tantrum occurred after the Fed began tapering the bond purchases that had been holding interest rates down. Rates shot up at one of the fastest paces in history. With the Fed still buying $120 bln per month in Treasuries and mortgage-backed bonds since the start of the pandemic, traders know there will eventually be another reckoning . Fed speakers have been clear in saying they’ll provide ample warning this time around, but no one wants to be late to that party! So traders are perpetually…(read more)
