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Lake Tahoe Mortgage Rates and Lake Tahoe Home Loan Rates

Lake Tahoe Mortgage Rates and Lake Tahoe Home Loan Rates-Morning Update-June 19, 2013:

Wednesday’s bond market has opened flat as investors await today’s activities. The stock markets are showing minor losses with the Dow down 36 points and the Nasdaq down 3 points. The bond market is currently nearly unchanged from yesterday’s close, which should keep this morning’s mortgage rates close to yesterday’s morning pricing.

There is no economic data being released today that is relevant to mortgage rates, but we do have three very important Fed events for the markets to digest. The first comes at 12:30 PM ET when the FOMC meeting that began yesterday will adjourn. It is widely expected that Mr. Bernanke and company will not change key short-term interest rates at this meeting, but there is a great deal of speculation that they will address or clarify their intentions on tapering their current bond-buying program (QE3). The post-meeting statement may or may not answer some of the questions that analysts and traders have. If it does, look for an immediate reaction in the financial and mortgage markets.

Next is the Fed’s updated economic projections at 2:00 PM ET. They will likely post their predictions on GDP growth, unemployment and inflation. These could be a market mover if they show even minor revisions to any of the key headline economic numbers. The larger the change, the more likely the markets will react. Revisions that point toward slower economic growth would be good news for the bond market and mortgage rates.

The most important event could be the last. This would be the press conference hosted by Fed Chairman Bernanke at 2:15 PM ET. The key topics will be unemployment, QE3 and what change the Fed expects to make and when it will likely happen. It also allows participants to seek more specific answers that the post-meeting statement and projections do not provide. Therefore, this could cause a larger reaction in the markets than the previous two events did.

There is a very high likelihood of seeing a great deal of volatility in the markets and also mortgage rates this afternoon. Therefore, please proceed cautiously if floating an interest rate. We will post an update to this report shortly after the press conference so the markets have an opportunity to digest all three Fed events.