How will tomorrow’s suspected rate cut affect mortgage rates?

I’m on the verge of getting a mortgage and was curious how the rate cut would affect mortgage rates. Is it a direct relationship, like if my rate is 6% today and tomorrow they cut a half point, will tomorrow mortgage rate be 5.5%?

I’m looking to do a 30 year fixed with about 50% down and excellent credit, any idea what kind of rate I should be looking to get?

Any insight you can offer beofre I take the plunge would be great. Thanks.

By | 2013-08-24T23:21:09+00:00 August 24th, 2013|Mortgages Home Loans Interest Rate|2 Comments

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2 Comments

  1. Mary B August 25, 2013 at 12:25 AM - Reply

    If people are holding their breath waiting for a break in the mortgage rates, they are going to be turning blue.

    IF the rates are cut, which the Feds have already said will not be significant (probably 1/4 point), is for the lenders, and not for the consumers.

    With lenders facing RECORD forclosures and losses in the BILLIONS, they are not going to bank on recouping their money by underwriting new loans….they aren’t going to pass that savings along, they are going to pocket it to help them recover.

    People don’t understand that the rate-cut is to keep foreclosures from blowing up in the 4th and 1st quarter 2008…they are already going to be bad, but they are trying to help people hang on for another year.

    Fed rates and mortgage rates are 100% unrrelated.

  2. bkwrm006 August 24, 2013 at 11:27 PM - Reply

    The Fed rate is a short term bank loan rate. This does not directly affect Mortgage rates, but inflation does affect mortgage rates.

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