Thursday, June 29, 2006

FOMC Meeting, Announcement Expected Soon


"The Federal Open Market Committee will release its decision and statement on interest rates at 2:15 p.m. ET today. There is an 88% chance that the Fed will boost the overnight lending rate to 5.25% from 5%, and a 12% chance it will boost rates up to 5.5%, according to fed funds futures traded on the Chicago Board of Trade.

"While a rate hike is a virtual certainty, the FOMC's statement will again be carefully analyzed for any clues as to where rates will go from here." (CNBC Money 6/29/06)

Looking foward to the announcement! :-)

10 comments:

  1. I'm going with 50 basis points and then hibernating until the fall.

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  2. Does it really matter what they boost this rate to? Hasn't it been irrelevent to mortgage rates lately? I remember watching it when I first bought ten years ago since the rate at which my mortgage would be issued could be affected by it. But I think over the last 6 years (or more) it hasn't really effected mortgage rates an iota ... Anyone know why it has become irrelevant to mortgage rates lately?

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  3. lance,

    It still does affect mortgage rates, albeit less so then 5, 10 or 15 years ago.

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  4. It sure affects the commercial prime rate!

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  5. that looks like an expensive house you took a photo of.

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  6. does Vegas have a line on FOMC moves? Greenspan could handicap if he ever gets tired of his speaking engagements.

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  7. Lance, I suspect that the reason that it doesn't affect mortgages is the same reason that treasury's have been flirting with inversion: is the current (fanciful IMHO) belief that interest rates are near a local maximum and the Fed will drop them. After all, the Fed rate is for an overnight loan, and mortgages are 30 year loans.

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  8. If this rate does not impact then why did Chief Cheer Leader DL was begging BB to stop raising rates. I think that it does impact ARM the tool of speculators.

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  9. waiting for godotJune 29, 2006 2:17 PM

    Bacon,

    You can actually get "odds" on the FOMC move on www.hedgestreet.com
    You can also gamble on the housing stats in major markets as well as oil futures, etc.

    It is a legit site, approved by securites and exchange commission

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  10. They just bumped it 25 bips.

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