Mortgage Rates Await Thursday’s Fed Announcement
Going into the third week of September, mortgage rates appear to be doing nothing but waiting for Thursday’s FOMC Announcement. Indeed, the entire bond market is holding its breath to see what the Fed decides upon.
Should the Fed announce a rate hike, it would not necessarily be a negative force for mortgage rates. It is largely the uncertainty leading up to this decision that is having the most effect on our current rates. Indeed, the absence of volatility in the market for a while now can likely be attributed to this uncertainty, as investors are on hold in anticipation of a decision.
Once the announcement is made, regardless of what it turns out to be, we can likely expect some dramatic activity. One way or another, rates could either rally or sell off. Many people trying to decide whether to lock or float would probably be wise to secure the reasonably low rates that are currently available, while only those who are sure they can afford to be wrong should take the chance of floating. Further, as we cannot necessarily expect that this lack of volatility will persist right up to Thursday, sooner is better than later.
