Mortgage rates wander upward but may be headed back down

Bond yields had been heading higher, bringing mortgage rates along with them. Then the Federal Reserve met this week, opting not to raise its benchmark rate. Not only that, in its statement, the central bank said that “economic activity appears to have slowed.” Because of the dovish tone struck by the Fed, home loan rates are expected to reverse course. Bankrate.com, which puts out a weekly mortgage rate trend index, found that a majority of the experts it surveyed believe rates will go down in the coming week. The Fed’s announcement came too late in the week to have much of an impact on the Federal Home Loan Mortgage Corp.’s survey. The government-backed mortgage-backer aggregates current rates weekly from 125 lenders from across the country to come up with a national average mortgage rate.

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