Rate Update October 29, 2008- Fed Day
Mortgage rates moved higher again today.
The volatility in mortgage rates has been unprecedented as of late. From Monday of last week to Thursday 30 year fixed rates dropped from 6.25% to 5.75%. Since Thursday to today 30 year fixed rates cycled back higher rising from 5.75% to 6.375%.
Today all eyes are on the Fed. They will announce their interest rate decision at 2:15 EST. Watch today’s you tube video for more information regarding this announcement. Let us remember that a cut to the Federal Funds rat DOES NOT necessarily mean that mortgage rates will move lower.
We do believe that because of technical trading patterns it is a good idea to float into the Fed’s announcement.
Current outlook:floating
Source of chart: wsj.com
Posted: October 29th, 2008 under Rate Update, The Fed.
Comments
Pingback from My Mind on Mortgages » Rate Update November 5, 2008
Time November 5, 2008 at 8:37 am
[...] shifted out outlook from locking to a floating bias one week ago today. This morning we’re finally seeing better rates as they have dropped [...]
Pingback from My Mind on Mortgages » Rate Update November 3, 2008
Time November 3, 2008 at 8:33 am
[...] Last Wednesday we shifted our outlook to “floating” after rates had increased by approximately .50% over the course of a week. Based on the technical trading patterns it looked liked mortgage-backed bonds may have bottomed and gain some upward momentum which would lead to lower mortgage rates. [...]