For the 4th straight week rates drop
The recent moves in interest rates are truly a conundrum as ever since the Fed started the 10 billion dollar monthly pullback in their bond purchases rates have dropped. Like clockwork each week since the first of the year rates have dipped lower each and every week.
This morning the average overnight rate on a 30 year fixed rate as reported by Bankrate sits at 4.38% down another 4 basis points from last week and at the lowest rate we have seen since December 1st of last year.
However, all signs point to this being a trend that cannot continue. The big news to watch for this week is the release of the Fed’s post meeting minutes slated for Wednesday afternoon. it is widely speculated that they are ready to announce a 2nd phase of tapering their bond purchases which should move rates higher. But then again so should have the initial taper during which rates have dropped 18 basis points from 4.56%.
But they will also be dealing with the biggest weekly drop in the stock market that we have seen in a very long time with fierce selling in some emerging markets so you just never know.
Always interesting, always fun.