Expect Volatile Mortgage Rates

Mortgage rates are expected to be volatile today as market determine how they will react to coordinated worldwide central bank rate cut. Throughout the week investors have rushed to the safety of bond and specifically US treasuries. This has caused a steady reduction in mortgage rates. However, with the just announced global rate cuts investors may continue to act cautiously and mortgage rates will maintain current levels or money may rapidly flow out of bonds and back into equities, which would cause mortgage rates to rise. Early indications in European markets and US market futures are that there is favorable reaction. So, expect measured increase to mortgage rates.