The Fed will be making their announcement on any rate increases/decreases tomorrow at about 1:15. Economists are predicting another .25% rate reduction. If they do, prime rate will be lowered to 5.00%. I'm told that typically when the Fed reduces rates it has a negative impact on mortgage rates. Depending on what impact they think a rate reduction will have on the inflation rate, we actually may see an improvement in mortgage rates tomorrow for a change.