Mortgage Rates Will Be Volatile This Week

All eyes will be focused on the Federal Open Market Committee meeting Tuesday.  A rate decrease is expected.  However, the magnitude of the change remains uncertain.

Keep in mind that a Fed rate cut does not automatically mean mortgage interest rates will improve, as was evident the latter portion of last week.  The Federal Reserve has direct control over the level of short-term interest rates.  The Fed's infuence over longer-term interest rates is less certain.

A cautious approach to float/lock decisions is prudent heading into the Fed meeting this week.  Be prepared for potential market volatility.