9/17/07 Market Snapshot
All eyes are on the Feds this week as they meet Tuesday for an FOMC meeting. Most analysts believe the Fed Funds rate will be reduced at the meeting; the big question is how much. The treasury yields have risen over the past several days as the stock market strengthened. Look for mortgage rates to improve after the Feds reduce the rate, as long as they don’t raise the level of inflation fear. If the markets perceive that inflation will become a factor with lower rates, mortgage rates could possible go up.