First things first: the Fed cut its policy rate today, but that doesn’t mean they cut mortgage rates. Why? Because they can’t and they don’t–especially not by a whopping 0.25% in a day (an amount that may be seen once or twice per decade when it comes to a single day’s change in mortgage rates). Case in point, mortgage rates for almost any lender are almost exactly where they were yesterday.
All that having been said, the Fed does SAY things that are important to the bond market that underlies rates. That verbiage can always push mortgage rates in either direction regardless of the direction that the Fed moves its own policy rate.
…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Source: mortgagenewsdaily.comNew feed