As you MAY OR MAY NOT KNOW the Federal Reserve Dropped today by 1/2 a point. Now don't go running off to the lender thinking your "mortgage rate" just dropped. There is alot more to mortgage interest rates than the Federal Reserve dropping it's rates. This action is a good move in the right direction to help stimulate the ecomony. It certainly caught my eye today.
But the immediate effects on interest rates, if they drop any lower, because they are pretty good right now, is yet to be seen. Remember interest rates are driven by things like Prime, Feneral bonds, Federal notes, T-bills, Fannie Mae etc as well as how the economy is doing. If we have a good economy, lots of homebuyers are buying - the interest rates tend to increase because we have a good supply of buyers. If we are in a declining ecomony where more consumers are being conservative and not buying we tend to have better interest rates-supply of buyers is decreased so rates are lowered to help stimulate more buying.
If you think todays news is good news for mortgage interest rates, I would consult your favorite lender because at this point it is too early to predict what the rates will be after today's announcement but keep in mind the adjustment created for today will impact the short-term rates and a 30 year mortgage is long term.
REMEMBER THIS if we could predict what the rates will be tomorrow, everyone would be waiting for tomorrow to buy. No one knows exactly what will happen. As rates adjust, it is up to you to decide when the time is right.
I invite you to contact me if you have further question or if you are in need of a good lender. I'm Becky Burghart, Real Estate SALESPERSON. Call me at: 785) 640-8811 or email me at: becky@valleyincrealtors.com or go to my website: www.beckyburghart. com
Anything I can do to make your Real Estate transaction a positive experience, I will do.
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Full Service Real Estate Salesperson WHO OUT SELLS 85% OF THE OTHER REAL ESTATE AGENTS IN THE TOPEKA & SURROUNDING AREAS-2007. Representing BOTH Buyers & Sellers locating to or from the Topeka area!
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Becky -- it looks like you are well on your way! Welcome to ActiveRain!
Yes, very true. When the FED dropped interest rates most the rates on treasuries actually rose. The 10 year is up about 12 basis points since the rate cut. This indicates that the bond market is expecting some significant inflation due to the cut. The ten year treasury rate has the most effect on fixed rate mortgages and most adjustables are indexed to the LIBOR which now seems to be climbing again today.