With three members of the Federal Reserve scheduled to speak today, don't be surprised if mortgage rates show some brief volatility. Despite weakness in housing, the economy has shown resiliency and continues to push forward. Markets had widely expected a slowdown, but are now having to change course -- rapidly. T
his is why mortgage rates have changed so suddenly in the past week.
Traders will be looking for clues about what the Fed sees that they don't in the speeches from Mishkin, Fisher, and Plosser.
Of the three speakers, Dallas Federal Reserve President Richard Fisher is expected to provide the best "sound bites". It was Fisher, after all, who claimed that the Fed was in the "8th Inning" of its rate hike cycle in June 2005 after nine previous rate hikes.
The Fed later increased the Fed Funds Rate eight more times before settling at today's rate of 5.250%.
