What does this mean for mortgage rates? Tapering QE decreases market liquidity. Normal circumstances will result in higher borrowing rates if there is less liquidity. The supply of capital is what will determine if it increases borrowing rates.
What does this mean for mortgage rates? Tapering QE decreases market liquidity. Normal circumstances will result in higher borrowing rates if there is less liquidity. The supply of capital is what will determine if it increases borrowing rates.