Daily Market Update 8/5/08

Mortgage rates were unchanged to slightly higher Tuesday morning ahead of this afternoon’s Fed policy decision regarding short term interest rates. Although expected to hold rates steady, their “bias” is likely to change from neutral toward higher (rates) to combat inflation. There has been some dissent among FOMC members at recent meetings. It is possible that 3 members of the 12-member panel will vote to increase rates. If so, this would be the largest number of dissenting votes since 1992. Many analysts feel the recent decline in oil prices may have taken some pressure off the immediate need for higher interest rates. Stocks and the dollar moved higher as oil prices dropped below $120 pb.

Leave a Reply

Your email address will not be published.

Back to top