The Federal Reserve lowered their outlook for the remainder of 2008 in their latest release. Among other things, the FOMC is predicting higher than expected inflation and unemployment, and lower growth. They also added that the recent rate cut was a close call.
The release has led to slightly better mortgage rates.
Bonds are rallying today on the worst consumer confidence numbers in 26 years. This coupled with continued employment weakness and higher oil prices has caused a two day rally for mortgage bonds.
The party may not be over yet, however. Technical indicators point toward a potential major rally next week, and yet another refinance opportunity.
Rates are already good, but are still higher than the lows we saw in late January and March. ...full