grauteam | mortgage update 12.10.2007

We have had another extremely volatile week for Mortgage Rates and it has continued today. Tomorrow the FED meets to decide policy on the Fed Funds Rate. We are banking on a .50bp rate cut. Remember, the Fed Funds rate is basically the overnight rate. The FNMA 30 Year Bond’s reaction to the news is what to watch. Remember “Bad for the economy = Good for Mortgage Rates.”