Bond markets have not taken kindly to the Fed Minutes. The minutes show a propensity toward Fed “action”, most of which markets believe to be inflationary. Inflation leads to higher mortgage rates and that’s exactly what we’ve seen.

The Federal Reserve released its September 21, 2010 meeting minutes Tuesday afternoon. Mortgage rates are slightly higher today.

From March’s Fed Minutes, it’s clear that the Fed’s concern about inflation is hugely diminished — a major plus for the mortgage bond market and mortgage rates.