Interest Rates Waiting Period

Happy Halloween for all our readers out there, I hope you all had a nice holiday, your dentist is certainly excited to see you all and your children soon!

The scares and frights should be over now...we are closing in on election day and more importantly the FOMC meeting which concludes on the 3rd. That is the date that this author thinks the FED will introduce their next round of Quantative Easing. This event is expected to drop borrowing costs back to record lows, and we should see rates dip down to 3.75%range in the coming weeks.

A few weeks back when the FED first menitioned the possiblity of another round of QE, the bond market got way ahead of itself and we saw rates fall dramatically, since then the exuberance has subsided and we have seen rates steadily climb. Remember, this is a traders market and a trader is always looking to make some profit. The over-enthusiasum led to a pickup in day trader momentum and led to a short term trend of rising rates....

Moving forward all eyes are on what exactly the FED will do this coming Wednesday. There is no reason to believe that they will not introduce another round of QE, to what extent and in what manner is the question. Till our "d-day" keep your eyes and ears open and hopefully you work with a skilled Loan Originator who has his finger on the lock trigger in the case that the FED pulls a fast one on us.