Mortgage ratesÃ‚Â stood at their lowest levels in more than 2 months as of last Wednesday, but have since moved higher for 3 straight days. Ã‚Â This leaves them roughly in the middle of their recent range–seemingly ready to move in either direction depending on this week’s motivation.
Investors will be looking for that motivation first and foremost from Fed Chair Yellen’s congressional testimony, which begins tomorrow morning and continues on Wednesday morning. Ã‚Â Although not an official Fed policy statement, these testimonies often serve as a venue for the Fed Chair to confirm, deny, or tweak prevailing policy expectations. Ã‚Â In other words, congress will almost certainly press Yellen for clarity on the Fed’s rate hike outlook and other potential policy changes. Ã‚Â