Monday Market Commentary: All Eyes on the FED
Image via MSNBC Last Week: Rates were basically unchanged for the week as the collective markets digested a mixed bag of news - from huge writedowns and losses in housing related sectors (financials & home builders) to major earnings beats in the tech space, to some flight to quality activity which drove bond yields down ahead of the Fed meeting this week. This Week: All eyes on the Fed (the FOMC meets Wed/Thurs.) The markets expect a .25% cut to the Fed Funds rate. To a large degree, this cut has already been baked into the cake. If you’ll recall the last Fed cut on Sept 18th, mortgage rates ctually rose a bit after the cut, but have now recovered to their before-cut levels in anticipation of this next move. Always remember - a Fed cut does not mean mortgage rates will drop - so tread carefully. This Weeks Economic Calendar [Barron’s}