Mortgage rates rose after the release of the FOMC statement yesterday. Whiel the interest rate sell off wasn’t substantial, MBS prices declined enough to force lenders to reprice for the worse. Overall there were only small adjustements made to the FOMC statement. The vote on whether to raise or hold steady the Fed Fund rate was not unanimous though. Thomas Hoenig, the Kansas City Fed Bank President, voted to raise short term interest rates while all others voted to leave rates unchanged. He believes the current 0 to 0.25% range for the Fed Fund rate was no longer warranted due to an improving economy. He also believes that inflation is a bigger concern than many believe. To slow inflation Hoenig believes interest rates need to be moved higher. For more on the FOMC statement and President…(read more)
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