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.
Source of chart: wsj.com