Wednesday is quickly approaching, and it’s the day that we’ve been waiting for since late May. Ever since the word leaked that the Federal Reserve might begin reducing it’s monthly $85 billion bond market purchases, September 18 was considered to be the day that announcement would most likely happen.

Some people believe the market has already made it’s adjustment for the announcement. If that’s the case, if the Fed really does begin pulling out, then we shouldn’t see too much of a reflection in mortgage interest rate changes. If the Fed announces that it’ll postpone the pullback, then it is likely rates will actually improve.

Of course, the market could have room still to react to the pullback announcement. Rates could see year highs, but ultimately know one knows for sure how the market will react.

The most interesting thing that has happened recently is that on Sunday evening, Larry Summers pulled out of the running for the next Fed Chair. The market has reacted very positively to this because, of the two candidates, Summers was viewed as the one with the most aggressive approach to the quantitative easing or pullback. As a result, we’ve seen a real rally in the market. Hopefully that’s evidence that the market has adjusted to the announcement and that it’s more concerned with the end of the pullback than the start.

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