Why Tuesday May Be Pivotal Day for Interest Rates

Mortgage market expert Dan Green is predicting that major changes are likely in mortgage interest rates after tomorrow's meeting of the Federal Reserve.
Tuesday, the Federal Open Market Committee meets for a scheduled 1-day meeting, its eighth of 8 scheduled meetings for 2011, and ninth overall.

The FOMC is a branch of the Federal Reserve; a 12-person, revolving committee led by Fed Chairman Ben Bernanke. Members of the FOMC make the final votes on U.S. monetary policy which includes the establishment of a "Fed Funds Rate".

Even though this rate is expected to stay the same, Green explains that other factors are now at play that could easily result in a sharp rise in rates

that have been hovering at record lows for over a month.