The following is a guest blog from Jeffrey Heckman and Joanne Rotella with Shelter Mortgage Company and does not necessarily reflect the views of GeorgiaMoves.com
1. Mortgage rates pushed a little higher last week as minutes from the Federal Reserve’s July 31 meeting were released and confirmed investor expectations that the Fed will almost certainly begin to “taper” its bond purchase program in September or October.
2. Mortgage rates then reversed course and fell back when the July New Home Sales report caught investors by surprise and showed a 13% drop from June.
3. Several Fed officials have expressed concerns that rising rates will slow the pace of economic growth. The decline in New Home Sales provides clear support that these concerns are justified. The question is whether the data will be enough to cause the Fed to hold off longer before tapering its bond purchases. Economic data released