Today's Fed meeting and when to rate lock

Tuesday's bond market has opened in positive territory as investors await today's FOMC meeting results. The stock markets are mixed with the Dow down 21 points and the Nasdaq up 3 points. The bond market is currently up 12/32, which will likely improve this morning's mortgage rates by approximately .250 of a discount point.

There is no relevant economic ne ws scheduled for release today, but this afternoon does brings us the results of today's FOMC meeting. There seems to be a slight consensus that another rate cut is coming today, but with much debate on the size. Some are predicting a quarter point cut while others are calling for a half point. There are still some analysts that think the Fed may wait until early next year before making another move.

The lack of a wide consensus means that we will likely see plenty of movement in the markets regardless of what the Fed does do. The post meeting statement usually has a significant influence on the markets and mortgage rates, but the results of the actual meeting are usually not much of a surprise. Accordingly, this particular meeting may bring more volatility than usual.

The meeting will adjourn at 2:15 PM ET today, so look for an update to this report shortly after the markets have had an opportunity to react to its results.

If I were considering fi nancing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Lock if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.

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