Daily Market Update 4/2/08

Mortgage rates were modestly higher today as the market focused on Congressional testimony by Federal Reserve Chairman Ben Bernanke. Analysts interpreted Mr. Bernanke’s statements as an indication the pace of Federal Reserve rate cuts would likely slow in coming months. The probablility of a 1/2% reduction in the Fed Funds Rate at the Fed’s April 30th policy meeting dropped to 12 percent from 24 percent yesterday, according to futures contracts on the Chicago Board of Trade. The odds of a 1/4% reduction were 88 percent.

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