Mortgage News Daily published an article this week that explains what the Fed rate cut really means for mortgage rates.
They wrote, “Mortgage rates were mostly unchanged today, which will come as a surprise to scores of consumers who mistakenly believe the Fed’s 0.25% rate cut equates to a 0.25% drop in rates. The Fed does not set mortgage rates…Unlike the Fed Funds Rate, which only changes once every 6 weeks, if at all, Mortgage-Backed Securities can change every minute of every business day. They’ve been doing just that for months as the market anticipation for the Fed rate cut has increased. Simply put, the Fed rate cut has long since had its impact on the financial market…”
We know this can be one of the most confusing parts of the mortgage industry and can lead to client questions; we’re here to help. Despite the Fed rate cut not directly impacting mortgage rates, mortgage rates are looking strong. If we can be of any assistance to you or your clients, please give us a call.
Click here to read the full article.