This week's trading action in the mortgage market will be largely driven by the message the Federal Open Market Committee sends in its post-meeting statement tomorrow afternoon (2:15 p.m. ET).
Market participants around the globe will tune-in to hear what the Fed has to say about the current level of benchmark short-term interest rates, the pace of economic recovery, the job growth outlook and what, if anything, the nation's central bankers intend to do should economic conditions worsen.
In the end the Fed is unlikely to provide anything new and substantive for credit market participants to chew-on. If this assessment proves accurate, look for investors to register their disappointment by pushing mortgage rates slightly higher. Any initial move to higher rates will likely be short-lived (by a day or two) as it dawns on the majority of market participants that additional support for steady to lower interest rates from the Fed is virtually inevitable as the economy continues to show little sign of gaining any traction in terms of job creation and overall growth.
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