Emergency Fed Move!

“Better get under cover, Sylvester. There’s a storm blowin’ up, a whopper.” Professor Marvel; The Wizard of Oz

Just when you thought it was going to be a light week on the Economic Calendar, the Fed comes out with an Emergency Rate Cut! A total of 75 basis points (.75% down to 3.50%).

The Bond Market is performing well in light of the rate cut (which is good for mortgage rates) but keep an eye on the market. Remember, Stocks and Bonds compete for the same investment dollar. This means that investors can choose to invest their money in the Bond Market or they can choose to invest their money in the Stock Market. If they choose the latter, expect a deterioration in mortgage rates.

More to come…

For now, continue to lock-in new loan applications.

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