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Marc Iafrate, MBA - Raleigh NC Real Estate

What Fed Rate Cut means to Raleigh Homeowners

By now you've no doubt heard that the Federal Reserve has cut interest rates. If you call your mortgage representative you are likely to hear that this rate cut has had little effect on lowering mortgage rates - Why?

The Federal Reserve only controls the Discount Rate and the Fed Funds Rate which is very different than the Mortgage rate. The Mortgage rate can be in effect for 30 years, while the Fed rate can vary from day to day.

Mortgage rates are actually based on mortgage-backed bonds known as Mortgage Backed Securities. These bonds issued by Fannie Mae and Freddie Mac and their trading performance determines the direction of mortgage rates. As bond prices rise, interest rates fall. As bond prices fall, interest rates rise. Thus, Federal Reserve rate cuts have virtually no direct effect on mortgage rates.

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Marc Iafrate, MBA
Raleigh Real Estate Broker
Coldwell Banker, HPW
www.MarcIafrate.com
(919) 314-7797 Direct

We hope you enjoy this blog as much as we enjoy bringing it to you. We welcome your comments. If you are planning on buying or selling a home in the Raleigh area, we have you covered. We have all the resources and knowledge to make your real estate transaction worry free!

Raleigh continues to win National Recognition

Forbes Magazine has recently named Raleigh as one of the Best Cities for Young Professionals and #1 Best Place to Sell a Home!

Congratulations Raleigh, the secret is out that Raleigh is one of the best places in the country to live, work, and play.

Nationally we are being recognized for the local economy which continues to be strong compared to the rest of the country and the diversity and quality of life the Triangle offers its residents.
_____________________
Marc Iafrate, MBA
Raleigh Real Estate Broker
Coldwell Banker, HPW
www.MarcIafrate.com
(919) 314-7797 Direct

We hope you enjoy this blog as much as we enjoy bringing it to you. We welcome your comments. If you are planning on buying or selling a home in the Raleigh area, we have you covered. We have all the resources and knowledge to make your real estate transaction worry free!