The big event of the week happens today when the FOMC announces their policy decision at 11:15AM PST, 2:15PM EST. The markets have priced in a 50-basis point cut, but many are calling for a 75-basis point cut. Once again, it raises the question about whether or not it will do anything to help mortgages, or rates in general. Longer term rates are influenced by supply and demand – the Fed could lower rates to 0%, but if no investor wants to own certain securities, the yields on those securities will be “sky high” in order to attract buyers. Mortgage rates, for example, remain high at well over 7% despite FOMC cuts, and some feel that unless the government gets more aggressive with purchasing mortgage loans, rates will remain around these levels although others feel that eventually mortgage rates will ease.