Think The Fed Cut Mortgage Rates? Think Again

Here is exactly what yesterday’s Fed rate cut did to mortgage rates: ABSOLUTELY NOTHING!  No Fed rate cut (or hike) will EVER do ANYTHING directly to mortgage rates because the Fed doesn’t set mortgage rates.  
Don’t let the caps-lock fool you into thinking I’m some angry guy with a keyboard who’s simply ranting for some self-serving purpose.  Of all the people you’ll talk to today and of all the articles you’ll read on this topic, you should trust me the most.  I don’t say that lightly or very comfortably, for that matter.  It sounds terribly cocky, but in this case, it’s also terribly honest.
For more than a decade, if markets are open and mortgage companies are quoting rates, I’ve religiously been tracking trends, patterns and plain old boring statistics.  I use actual wholesale rate sheets from multiple lenders every day to synthesize an average mortgage rate that consistently outperforms survey-based mortgage rate data.  In short, if you could only talk to one person to get a highly authoritative take on mortgage rate movement, I’m your guy….(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