Jeff’s Carlsbad Blog for First Time Home Buyers

Will the Fed’s Rate Cut Help Mortgage Rates?

Posted in Financial,Mortgage info by Jeff Dowler on January 23, 2008
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Everyone knows by now about the dramatic rate cut by the Fed’s on Monday.

Many folks assume this will be great news for mortgage rates and we will see more drops. The reality is that is not necessarily true.

We may see a small shift downward, but in the past (several times in 2001 and 2003) the long-term mortgage rates went UP after the Fed’s rate cut (.25% and as much as .78%).

The current rates are the best we have seen in 2 and 1/2 years – that’s pretty impressive. If you are planning to buy or are in loan process now, it MIGHT be a good idea to lock in rather than wait and hope for lower rates that don’t materialize. There’s no way to know for sure, but it sure bears consideration.

Talk to your loan officer to get some advice before you make a decision.


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