Mortgage Rate Update - Up or Down?

The mortgage rate improvement since October 1 is tied to Wall Street thinking the Fed is going to step into the free market and purchase billions of dollars of US Treasuries, and MBS.  If the Fed does get involved, the likelihood of rates falling is high.

If by next week the Fed doesn't make an announcement one way or the other, be wary of Wall Street unwinding its trades as a precaution.  When Wall Street backs out, the same forces that took rates lower will carry them straight up.

It wouldn't surprise me if rates were to jump .250% in a day, and .500% in a week.

Take a look at rate movement today.