All eyes are on the Fed today, as we await their interest decision and policy statement this afternoon. Most experts expect a .50% rate cut, which would bring the Fed Funds rate to 1.00%--a level last seen in June 2003.Typically Stocks enjoy a rate cut, while Mortgage Bonds suffer.

However, Stocks may have peaked a day early with a near 900-point rally yesterday, while Mortgage Bonds once again suffered big losses. So we may see Stocks and Bonds react differently today.For now, I recommend floating into this afternoon's Fed Meting.

Afternoon Update:

The selling pressure on mortgage backed securities continues and mortgage rates continue to move higher as a result. It has been a disappointing last week and a half as we have watched mortgage rates move from the middle 5% range to the middle 6% range for a 30 year fixed rate.

My recommendation this afternoon is to lock.