The economy, and by extension mortgage rates, is a funny thing. Over the last several weeks, the economy has been a steady drumbeat of positive economic data. The latest available GDP estimate was over four percent for the first time in a while. The Federal Reserve was confident enough in the economy that they finally decided to reduce their purchases of Treasuries and Mortgage Backed Securities.
But thanks to this positive data, mortgage rates began trending upward. Mortgage forecasters, us included, projected that mortgage rates would continue to trend upward during 2014 compared to the year before.