The Day Before the Fed Meeting….

Consumer Confidence posted close to an 18-year high and housing prices increased again, though not as much as forecasted. Markets are continuing their passive attitude today with stocks hovering ever so slightly in the green and mortgage bonds slightly in the red, yet again.

It’s the day before the Fed meeting, and markets appear to be positioning themselves to make their move in response to the comments, or more so their interpretation of the comments made tomorrow. It’s always a wild ride to watch the markets often violent reaction to an event as traders attempt to read between the lines and take such opposing positions with billions of dollars at stake. But only after it settles down and the prevailing move shows itself will we know the final answer. Are mortgage rates going higher or is there finally some relief?  It’s a big risk / reward environment, so will maintain our locking bias.