Analysis: Fed Likely to Push Back on Market Expectations of Rate IncreaseJun 13 2013
Mortgages are catching a late bid here as a Jon Hilsenrath article in the WSJ is making its way around. He is basically stating there is a difference between Fed tapering and rate increase. Also, states the Fed, as they’ve been warning over the last few weeks, is NOT ok with the market’s reaction to the selloff. Overall, very dovish and points out the Fed still needs to see signs of sustainable growth and inflation before making their exit. Mortgages are leading the charge higher as Fannie 3s are trading at 100-15, up about 17/32nds on the day. Here’s the article.