This is the week we’ve been waiting all month for, since the Federal Reserve Open Market Committee meets this week. We will see if the run of recent good news on housing and employment will “tip the scales” for the Fed to consider tapering the bond-buying program, which has kept rates low.
Last week CoreLogic reported a 30% drop in foreclosure activity in October, compared to last year.
And after a run of weekly declines, Initial Jobless Claims jumped by nearly 70,000 last week, pushing claims to the highest level since early October.
Bottom Line for Mortgages
Activity in bond markets is light to start the week. It appears that many investors are taking a “wait and see” approach until after the Fed releases their statement this Wednesday at 1:00 p.m., CST.
Any indication that they will start slowing their bond purchases could push mortgage rates higher.