I’m preparing this post so I’ll be ready to publish as soon as I hear what movement, if any, the FOMC will take to rates. I really can’t guess if they’ll leave the Funds rate unchanged or cut. This morning, the Fed Funds Futures had a 100% change for a 0.25% cut and a 50% changes for a 0.50%. Although reducing the Fed Funds rate is great for home owners with HELOCs, it could mean higher mortgage interest rates for the rest of us.
And the decision is….(to be continued)…
Update September 15, 2008 11:15 am: NO CHANGE! In a unanimous decision, the Fed Funds rate remains at 2.0%. You can read the entire press release by clicking here.
mortgage rates have lost a lot of ground today. The same quote that I provided this morning is now 0.50% higher in fee. Argh. 🙁