The Federal Reserve minutes in mid-August narrowed speculation regarding how soon the Fed would begin "tapering" $85 billion in monthly bond purchases. Policy makers were "broadly comfortable" with the plan if the economy continues to improve. All told, as the economy improves, home loan rates may continue to adjust further.
Prior to the announcement, stock prices had been consolidating and stalling.
Locking in the Value
The mid-August Existing Home Sales report was also released, reaching a four-year high, as borrowers jump to lock-in deals before rates rise and leave them behind. Sales of existing homes rose six percent from the month prior and a whopping 17 percent from the previous year.