Mortgage rates moved downward last week after the Federal Reserve decided that the economy is not ready for tapering of its bond purchase program. The Fed left the door open to begin tapering when it believes that the economy is on solid footing. The Fed again pointed to weakness in the labor market and showed concern for the potential impact of increasing mortgage rates. Presumably, some of the evidence the Fed is waiting for is to see how much the increase in mortgage rates has cooled the housing market.
The key reports for this week include the Conference Board's Consumer Confidence Index on Tuesday and the August New Home Sales numbers on Wednesday. As the market continues to digest the Fed's no-change in tapering policy, rates should continue trending downward, at least for the near term