Real Estate Finance Alerts

The FED will adjourn and issue their statement tomorrow at 2:15 EDT.  Rates hike odds are still only 10%.  Remember, the focus will be on changes to the statement setting expectations for future rate actions.  Despite increased rhetoric by FED Chairman Bernanke indicating a shift to inflation risks indicating more HIKES, the market feels the FED will set the stage for future rate HIKES and not make a dramatic policy shift.

Futures now indicate just over 45% odds the FED will HIKE rates by 25 basis points at the August 5th FOMC meeting; see the probabilities chart here.   The market indicates the FED will hike rates between 50 and 75 basis points by the end of 2008.  

You should still lock your loan today or tomorrow to eliminate the risk of rates spiking.  If rates spike, you are locked.  If rates go down, you can always relock.  You do not have to be right, or lucky, as long as you lock before the news.