Fed Vice Chairman Donald Kohn spoke just now and had 3 important things to say that will impact mortgage rates:

 1. Rate Cuts won't prevent near term economic weakness

2.  Return to growth will "take a while"

3. Most importantly, he does not expect recent inflation rates to persist and inflation will slow in coming years

All in all, this is great news for mortgage rates.  I expect the mortgage bond market to react quite favorably.  I would float through the rest of the day at least, until we have another update.  So far bonds are improving...