Global Economy and Mortgage Rates
By Joseph Cleary
· FOMC Meeting· Core PPI· Retail SalesUS short term rates unchanged!!FOMC Meeting:So the Fed met this week and there was a 99.99% chance that they would leave the Fed Funds Rate unchanged. With the inflationary news of late being positive and the Fed leaving short term rates unchanged, the bond market continued to do well, which in turn produces the great long term interest rates that we are enjoying now. Bank of England hikes short term rates:On the other side of the "pond" however England's inflationary numbers are on the rise, so the bank of England raised their short term rates by .25%. Why should we care? As I have mentioned before, the mortgage backed securities that investors purchase in our bond market are purchased by foreign investors too. So when England's short term ra...