This past week, we watched mortgage backed securities (MBSs) bounce higher off 2021 price lows, helping home loan rates modestly improve from their worst levels of the year. Let’s talk about a few things moving the markets and what to look for in the weeks ahead.
- Fed Chair Throws Towel in On Inflation
I think it may be a good time to to retire the word (transitory) and try to explain more clearly what we mean Fed Chair Powell 11/30/2021
2. When the Fed become Hawkish
“At this point the ecomomy is very strong and inflationary pressures are higher, and it’s therefore apprpriate in my view to consider wrapping up the taper of our asset purchases, which we actually announced at the November meeting, perhaps a few months sooner” – Fed Chair Jerome Powell 11/30/2021