Tomorrow, September 18th is the big day! That is right, that day is this Wednesday – the day the Fed releases its notes from their Jackson Hole, WY retreat! What do you suspect they will say?
The prediction is that the Fed will begin its “official” taper of their buying of mortgage backed securities. Then, the questions becomes, when? What impact will that have on mortgage interest rates? You ready for my hunch? Mortgage rates will drop. The reason is that the market has already course-corrected based upon the earlier foreshadowing this summer and I think that the economy isn’t as well off as some of the numbers convey.
I guess we will see on Wednesday and going forward – what is your thought on all this?