How long til it is revealed in mortgage rates?

If the fed lowers interest rate 1/4 percent or possibly 1/2 percent this week as expected, how long til it is realized in mortgage rates?
Thanks! I’m a little confused, but thanks for the answers! I did go to and their experts predict rates to fall further due to either the fed or lackluster employment numbers. Apparently, predicting mortgage rates is harder than ever.

By | 2013-08-24T15:19:17+00:00 August 24th, 2013|Mortgages Home Loans Interest Rate|5 Comments

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  1. Scuzzy August 24, 2013 at 5:14 PM - Reply

    Just because the feds lower their rate, means nothing to wholesalers. It does not always induce a reduction in home loan rates. What it boils down to is what the wholesalers offer the retail market. If you looking to buy or refinance shop, shop, shop. I have seen one lender drop radically but that is only because they are trying to increase there pipeline. There is no rime or reason in pricing home mortgage rates. It falls on what the market can bear and how much money the lender needs to put out in play. Plus, until the moment you lock in your rate all this means nothing and if already have, then normally you are stuck with that rate.

  2. Emily_Knell August 24, 2013 at 4:22 PM - Reply

    Although everywhere you go it feels like the sky is falling in Real Estate & Lenders are going out of business, Mortgage rates are still very very low. If the Fed lowers rates by a 1/4-1/2% that doesn’t mean rates for a home are actually lowered by that amt. the affect on the mortg. market may only be an 1/8% different.

    If you’re buying a home ask the seller to pay, not just your regular closing costs, but ask them for more $$ to Buydown your interest rate, by 1/4-1/2% or more. Lots of great foreclosure deals out there!!

  3. August 24, 2013 at 4:00 PM - Reply

    the discount rates have nothing to do with the mortgage rates.

    if the FED lowers the discount rate….it will stimulate the market to go up. When the market goes up….the bonds go down in Yield Spread. More investors buying stocks/mutual funds….leads to more consumer spending.

    to make a long story short…if the FED lowers the rate…the mortgages WILL go up.

  4. newmexicorealestateforms August 24, 2013 at 3:59 PM - Reply

    Usually done within the first week, you will receive a notice to the change to your loan if your loan is fixed to the index. Otherwise no change to your loan will be made such as on a fixed rate loan

  5. alterfemego August 24, 2013 at 3:39 PM - Reply

    Almost immediately.

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