by Bill McBride on 3/15/2017 08:44:00 PM
The FOMC's statement and projections were perceived at "dovish" (probably one less hike this year than expected). So mortgage rates declined …
From Matthew Graham at Mortgage News Daily: Biggest Intraday Drop of the Year For Mortgage Rates
Mortgage rates fell at their fastest pace of the year following today's rate hike announcement from the Fed. If you're wondering why mortgage rates fell while the Fed's rate moved up, you're not alone. Fortunately, the explanation is simple.
Financial markets had already fully accounted for the chance that the Fed would hike rates today. They'd even gone a step further an begun to account for a faster pace of future rate hikes. And it was that future outlook that allowed for our pleasant surprise.
As it turns out, the median forecast among Fed members didn't see the Fed Funds rate ending the year any higher than the previous batch of forecasts (both for 2017 AND 2018). … The average lender offered mid-day improvements that brought rates 0.125% lower, on average. In terms of conventional 30yr fixed rates, most lenders are back down to 4.25% now on top tier scenarios.
• At 8:30 AM ET, Housing Starts for February. The consensus is for 1.266 million, up from the January rate of 1.246 million.
• Also at 8:30 AM, The initial weekly unemployment claims report will be released. The consensus is for 242 thousand initial claims, down from 243 thousand the previous week.
• Also at 8:30 AM, the Philly Fed manufacturing survey for March. The consensus is for a reading of 32.5, down from 43.3.
• At 10:00 AM, Job Openings and Labor Turnover Survey for January from the BLS. Jobs openings were mostly unchanged in December at 5.501 million compared to 5.505 million in November.