Monday Market Commentary: More Volatility in Store for Mortgage Rates?

by Alex Stenback on February 4, 2008

Last Week:
Another extremely volatile week in the mortgage bond markets, with large intraday swings.  The whipsaw action driven in large part by stocks, and their reaction to the Fed cutting 50 bps from both the Federal Funds rate and the Discount Rate.  On balance, most mortgage rates finished the week higher by roughly .125%.
This Week:
Stock driven volatility seems to be the theme, so expect more of it as a number of high profile earning reports hit the streets.  The economic calendar contains mostly second tier data, but don’t rule out shot-from-the-dark negativity in the financials/homebuilders/insurers as possible market movers.Econocalendar_2408
Click for larger image.

[For up-to-the minute news and updates on mortgage rates and the factors that drive them, check out the BTM: Quick news/Twitters section on the upper right, or subscribe to BTM Twitters.]

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