Sept. 23, 2009Written 10:30 a.m. EDTFED DAY: The Federal Reserve wraps up a two-day meeting today, and will release its rate policy statement at 2:15 eastern time. They won't raise short-term rates. But they might say something that causes interest rates to move up or down. And that means that it's risky to float into this afternoon if you plan to close on a mortgage this week or next. Why is it risky? Because if rates rise today, you don't have a lot of time for them to fall.You can't predict what the Fed will say, and even if you could, you wouldn't be able to predict accurately how the markets would react. For example, let's think about what would happen if the Fed were to say today that it will extend its mortgage purchases into the middle of next year. Would mortgage rates stay low, or would investors worry about inflation and let rates rise? Either would be a possibility. advertisementRelated Links:Site mapFix mortgage, then deal with other debtFed holds rates for 7th timeRelated Articles:First-time buyers tax credit'Short sale' buyingThe fax on TBW
Sept. 23, 2009Written 10:30 a.m. EDT
FED DAY: The Federal Reserve wraps up a two-day meeting today, and will release its rate policy statement at 2:15 eastern time. They won't raise short-term rates. But they might say something that causes interest rates to move up or down. And that means that it's risky to float into this afternoon if you plan to close on a mortgage this week or next. Why is it risky? Because if rates rise today, you don't have a lot of time for them to fall.
You can't predict what the Fed will say, and even if you could, you wouldn't be able to predict accurately how the markets would react. For example, let's think about what would happen if the Fed were to say today that it will extend its mortgage purchases into the middle of next year. Would mortgage rates stay low, or would investors worry about inflation and let rates rise? Either would be a possibility.
Mortgage rates giving you motion sickness?
Let us watch for you. We'll tell you when they hit your target.