Post-Fiscal Cliff, Mortgage Markets Turn Attention To Jobs Data
Posted by Bill Mann on
Mortgage rates moved higher Wednesday up congressional leaders voted to avoid the "Fiscal Cliff".
Mortgage-backed securities (MBS) fell as investors bid up stock prices. Confidence among investors and consumers typically causes mortgage rates to rise. That's what happened Wednesday. For Thursday and Friday, expect jobs data to dictate where Coastal Delaware mortgage rates are headed.
The Federal Reserve has said that the national Unemployment Rate will dictate future monetary policy, with the central banker planning to raise the Fed Funds Rate from its target range near zero percent once joblessness falls to 6.5%. Currently, the jobless rate is 7.7 percent. As the jobs market improves, equity markets should follow, causing mortgage rates to -- again…
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