The big news of the morning beside the analysis of the presidential debate was the Fed. The FOMC dropped the funds rate .5% to 1.5%. This drop was a coordinated move world wide.

An important note to remember is that the FOMC does not control the mortgage interest rates directly as they are based on the mortgage securities bonds. While the FOMC does not control mortgage rates, they do influence them and time will tell how the traders/markets will react to the lower rate.

The FOMC is set to have another meeting on October 28th and 29th and from the sounds of it another rate cut is not out of the question.

Now it’s a waiting game to see how markets react, as of now mortgage rates remain relatively unchanged by the news, but as we all know now more than ever, that can change!