The FED drops the Funds Rate to 1.00%

Rhonda Porter on 10 29, 2008

The FOMC, during a scheduled meeting, elected to reduce the Fed Funds rate by 0.5% from 1.5% to 1.00%. Unless you have a HELOC that is floating (attached to the Prime Rate) this does not directly impact your mortgage interest rates. However, it will influence mortgage rates based on how traders react (50 basis points is what was expected). If you’re a long time reader of Rain City Guide, you’ve all ready heard this song and dance.

FOMC Press Release

About the Author: Rhonda Porter

Rhonda Porter began her mortgage career on April 1, 2000 at Mortgage Master Service Corporation, a family-owned correspondent lender that has been lending in the Pacific Northwest for over 30 years. Prior to mortgage, she was in title industry for 14 years where she managed an escrow branch and gained an invaluable insight to the real estate industry. Rhonda Porter has a CMPS designation and is a Licensed Loan Originator 510-LO-32047. Rhonda is also the Chairperson for the Social Media Committee for WAMP (Washington Association of Mortgage Professionals). She was recognized in Seattle Weekly's Best of 2009 issue as the Best Twitting Mortgage Broker (check at her Twitter @mortgageporter) and Sellsius 2007 Top 12 Women Real Estate Bloggers and 2007-2008 Maginficent 7 Consumer Articles. Rhonda originates mortgages for homes located in Washington State. You can reach Rhonda at rhonda@mortgageporter.com or by calling (206) 718-9488. NOTE: Rhonda Porter and Mortgage Master Service Corporation are not affiliated with any real estate brokerages.

8 Responses to “The FED drops the Funds Rate to 1.00%”

  1. Gordon
    October 29, 2008 at 11:50 am

    Rhonda, you are on it! WSJ didn’t even get around to reporting this until 11:46 AM PST…
    http://online.wsj.com/article/SB122528340048979949.html?mod=djemalertNEWS

    Reply
    #327625
  2. Rhonda Porter
    October 29, 2008 at 11:54 am

    I had the post ready with my finger on the publish button… I was anticipating a cut of 50 bps too! :)

    Reply
    #327626
  3. Roger Ingalls
    October 29, 2008 at 12:04 pm

    I’m getting an alert to lock pending re-prices to the worse for 30yr fixed.

    Haven’t received any yet (12:00), but most likely will.

    Fairly typical after a fed rate cut.

    Reply
    #327629
  4. Rhonda Porter
    October 29, 2008 at 12:09 pm

    Roger, I have the same alert. Although it seems like just blinking drives up mortgage rates these days!

    Reply
    #327630
  5. Roger Ingalls
    October 29, 2008 at 12:39 pm

    Just got two reprices for the worse, pretty small movement, I think investors already priced in the Fed’s move.

    Reply
    #327633
  6. Rhonda Porter
    October 29, 2008 at 5:33 pm

    I just provided an updated GFE for a client–his rate is up 0.625% in exactly just one week. He was wanting to make sure his preapproval is still valid. Watch rates come back down to what I posted last Friday–just so it appears that rates aren’t volatile. :)

    Reply
    #327643
  7. Jesse W.
    October 30, 2008 at 10:11 pm

    Thank you for clearing it up about mortgage rates!

    Jesse W.

    Reply
    #327703
  8. Rhonda Porter
    October 31, 2008 at 10:09 am

    Jesse, you bet. I’ll have mortgage rates posted here around lunch time. Morning rates are at Mortgage Porter and I’m all ready receiving intraday rate sheets for the worse.

    Reply
    #327718

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