Opinion: Can Mortgage Rates Avoid a Taper Tantrum As Fed Exits Market?
The last time the Fed signaled the end of a bond-buying program, mortgage rates jumped more than a percentage point in the span of two months.
June 14, 2021 3 MIN
The last time the Fed signaled the end of a bond-buying program, mortgage rates jumped more than a percentage point in the span of two months.
While the Covid-19 pandemic is receding in the U.S., a weak global economy is boosting demand in the bond markets.
Mortgage rates ticked higher this week while remaining below the 3% threshold as bond investors worried about rising Covid-19 infections, Freddie Mac said.
Mortgage rates are falling as bond investors worry about a resurgence of the Covid-19 pandemic that would delay an economic resurgence.
The rate dropped almost a tenth of a percentage point as bond investors worried about a jump in Covid-19 infections.
The average U.S. rate for a 30-year fixed mortgage fell to 3.13% this week, the first drop since early January, Freddie Mac said in a report on Thursday.
