Wednesday’s bond market has opened up slightly as investors prepare for today’s FOMC meeting results. The stock markets are mixed with the Dow up 5 points and the Nasdaq down 8 points. The bond market is currently up 5/32, which will likely push this morning’s mortgage rates lower by approximately .125 of a discount point.

There is no relevant economic n ews scheduled for release today. We do, however, have the FOMC meeting to deal with. It will adjourn at 2:15 PM ET today and is expected to bring another quarter point increase to key short-term interest rates. The move itself will not likely affect the markets, but the post meeting statement should lead to some volatility during afternoon trading.

Traders will be looking for any indication of the Fed’s next move. Many are hoping and expecting to see that a pause or end to the rate hikes will come in the immediate future. If the post-meeting statement confirms that theory, we should see the bond market rally and mortgage rates fall this afternoon. But, a hint of more rate hikes could lead to bond selling and higher mortgage rates later today and tomorrow.

Look for an update to this report shortly after the markets have had an opportunity to react to the news.

If I were considering financing/refinancing a home, I would…. Lock if my closing was takin g place within 7 days… Lock if my closing was taking place between 8 and 20 days… Float if my closing was taking place between 21 and 60 days… Float 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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