What Does A Fed Rate Cut Mean For Your Mortgage Rate?

What Does A Fed Rate Cut Mean For Your Mortgage Rate?

What Does A Fed Rate Cut Mean for Mortgages?

We often get the question, when is the best time to lock in my rate? This question tends to heighten in volume when a Fed meeting is around the corner.

In short, do not let the rumor that rates are going down deter you from locking in your rate. Why? The Fed meeting affects a short term rate that affects short term loans between banks, called the Innerbank Offer. Mortgages are on long term bonds that are usually 30 year fixed options, therefore the Fed cutting rates does little to nothing for your mortgage rate. In fact, over this past year mortgage rates have dropped .75% without the Fed doing anything.

So if you’re thinking of locking your rate and your loan officer is suggesting it, do it!


 

Leave a Comment





About Us

Thanks for visiting Fairway Independent Mortgage Corp.. Local expertise and broad real estate experience will benefit you whether you are serious about buying or selling a home at this time, or are a returning client checking out the many homeowner resources offered here.

Please consider this website as your online source for mortgage, real estate, and local community information. Be sure to return often for the latest property listing updates. READ MORE

Fairway Independent Mortgage Corp.

(303) 670-0137
165 S. Union Blvd
Lakewood, CO 80228

Fairway Independent Mortgage Corp. NMLS# 2289
Texas Recovery Fund Notice
Richard Baxter NMLS #395819, CO License #100034412
FIMC #2289
EHO EHL