Mortgage rates are unchanged this morning.
Today’s monetary policy statement from the Fed due out at 12:30 EST is front and center for the interest rate markets. Will the Fed unveil another round of quantitative easing (QE3)? If so, one what scale will it be? Lastly, will it actually help improve the economy?
Most analysts believe the Fed will announce some form of QE3 today. Where there is debate is on the duration & depth of the program. The more bond buying the Fed commits to and the longer they commit to doing it interest rates stand to benefit. The opposite is also true. If the Fed announces a plan that the markets interpret as “soft” then we could see rates rise.
Stay tuned! Given that rates are basically at all-time low levels I still believe locking in is the best play.
Current Outlook: locking bias