that this week lenders have been passing the word around to hold of this week on refis and whatnot, b/c they expect a cut of the interest rate next week, possibly a full point.

if that happens, we will all be bathing naked in a pool of 10s and 20s. maybe a few 50s.

Does this mean my drought might possible end?

I have just finished doing a traditional native american "BPO Dance" Get your umbrellas, cuz the rain is coming.

If that does not work, we will need to sacrifice 1 REALTrance and 1 FARVV call center employee. Preferably from the Punjabi region. The BPO gods like Punjabi.

You betta run Buddeee

I doubt a full percent for the cut, more like another half percent.

Oh great, here come those pain in the *** WF interiors that they don't tell the homeowner that an agent will be calling to inspect the house and take pictures. Pay's decent, but still a pain to explain why you're calling. Hopefully most of them will be drive-by's and be easy to comp

Bring it on!!! My damp spell needs to change and become a flood!

Thanks for the heads-up!

1/2 point .........

I got my umbrella.

agreed...sometimes the news reports tend to be dramatic for drama sake.

The rates typically fall when there is a rumor of a rate cut. When the rate is actually cut, the rate for mortgages typically goes up.

123Sisters, WHAT????? Rates fall with rumors of rate cuts??? If that were true I would be a billionaire. NoNoNo. Rate cuts fall when there is actual rate cuts!! You say, "When the rate is actually cut, the rate for mortgages typically goes up"??? C'mon, common sense says when the fed cuts rates the rates go down. If I'm missing something please inform me.

Gman, I know it seems counter intuitive, but 123sisters is right most of the time. In most cases, by the time the "rumors" trickle down to us little people, the rate cut is already beginning to price itself into the market.

For instance if a rate cut is expected at .25%, then by the fed meeting that proposed or rumored cut is anticipated so the cut in our rates (mortgage rates) have already been priced in. In the cases that mortgage rates react favorably and quickly to rate cuts by the fed are: when the rate cut is unexpected, or when the cut is more than the market priced (let's say .5% actual fed cut, when the rumor was .25%).

After 13 years of the mortgage business and staring at the 10yr bond yield curves I still don't know it all. The one thing I know for certain is, that I certainly don't know everything.

123 sisters is right. In the commodities market, the brokers say "Buy the rumour, sell the fact."

She is EXACTLY right. I've been in the mortgage business for a looooong time and that's the way it works. Rates are down now, but when the cut comes rates will go UP.

I hope it pours BPOs. It's been dead here for the last week.

Ask a loan officer if you do not believe me. They are falling NOW on the RUMOR of a NEAR FUTURE cut, aren't they! I am taking about the MORTGAGE rates reaction to the actual cut in the KEY LENDING RATE cut by Ben Bernanke and the FED. 5.75 Monday, 5.625 Friday in my area for a 30 year fixed mortgage. When the FED meets and ACTUALLY cuts the rate, the actual MORTGAGE rates often go UP. I will post again when that happens and let you know what the rate is in my area as compared to 5.625 now. I DO NOT post information that I am not sure is correct.

BTW, thanks Alpine, Golden Girl and Vintage for the support!

123 Sisters is more or less correct. Mortage rate market is so competitive that lenders adjust their rates in anticipation of future events. Rates will move down prior to any rate cut in almost all cases. Often, if fed rate movement is not what was anticipated or hoped for the mortgage rates of many lenders will move up when Fed cuts.