Mortgage rates experienced their first genuine improvement of the month today.  The gains were nothing if not very small, but they ended an uncommonly long 11 business day streak of sideways to higher rates. 4.25% remains as the most prevalent conforming 30yr fixed rate for top tier scenarios with the day-over-day changes being limited to closing costs.

Essentially, the losing streak of the past 2 weeks was the market’s way of getting into position for tomorrow’s big announcement from the Fed.  Market participants have been concerned that the Fed could change their verbiage in such a way as to suggest an earlier eventual rate hike.

This debate has focused on the words “considerable time” which the Fed has been using to refer to how much time would likely pass between the end of asset purchases and the first rate hike.  But whether that phrase changes or not, the Announcement will still be scrutinized for any additional clues.  There’s tremendous potential for volatility tomorrow afternoon.  It’s a situation where risk-takers could easily be rewarded if the Fed is friendlier than expected.  The risk is equally present though, as tomorrow could confirm a new direction for rates and the end of positive trend that’s been in place so far in 2014.

Daily Montana Mortgage Rates Update