One of the broader points we try to get across here at Behind the Mortgage is that mortgage rates can and do move around due to factors that may surprise you.
In fact, one of our very earliest posts, way back in 2004, showed how African Weather can impact mortgage rates.
And it is not always material events in the weather or markets that move rates. Sometimes, words are enough. Especially if the words are uttered by the right guy (or gal.)
Case in point, Philadelphia Fed President Charles Plosser, at something called the Philadelphia Business Journal Book of Lists Power Breakfast:
Keeping policy too accommodative for too long worsens our inflation problem. Inflation is already too high and inconsistent with our goal of — and responsibility to ensure — price stability. We will need to reverse course — the exact timing depends on how the economy evolves, but I anticipate the reversal will need to be started sooner rather than later. And I believe it will likely need to begin before either the labor market or the financial markets have completely turned around.
In english: He’s advocating for rate hikes to start sooner, rather than later. This, predictably, sent mortgage bonds lower today, and caused rates to tick up.
Get your power breakfast on.
Perspectives on the Economy, Monetary Policy, and Inflation [FED]