From the desk of Barb Huber at Golf Savings Bank:

There is a very important Fed meeting on September 18th. The consensus is that the Fed's are going to cut interest rates. I want to remind everyone what this really means:

Fed rate cuts will help lower rates on Home Equity Lines of Credit, personal loans, auto loans and commercial paper, but a rate cut by the Fed may actually cause fixed rate mortgage rates to worsen. So we need to pay close attention to the Fed comments at the Sept 18th meeting......

If the Fed says they are comfortable with inflation being contained, bonds will improve...bonds up, interest rates down. If the Fed indicates they are cutting rates in the face of inflationary fears, bond prices will likely move lower causing home loan rates to rise!