The Federal Reserve left short term rates alone today. The key Federal Funds Rate has been at 5.25% since June 2006. The FOMC statement was balanced overall. Bond prices fell (yields increased) in reaction to the Fed observation that “a sustained moderation in inflation pressures has yet to be convincingly demonstrated.†Meaning inflation is still not where the Fed wants it to be and the way the market reacted there is a possibility that rates could increase ever so slightly tomorrow morning. There has not been any intra-day rate increases from any lender that I know of, so that is good.
I’ve been closely watching bond movement today because I have a few buyers who are awaiting contracts to be accepted. I usually don’t lock loans until I have a fully accepted contract. I’ve called the agents to let them know that if I could receive the contract before our deadline I can still lock them into today’s rates. Although, I will say rates will not increase dramatically. I’m just watching out for the person I work for, that’s all.