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.
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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
I had the post ready with my finger on the publish button… I was anticipating a cut of 50 bps too! š
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.
Roger, I have the same alert. Although it seems like just blinking drives up mortgage rates these days!
Just got two reprices for the worse, pretty small movement, I think investors already priced in the Fed’s move.
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. š
Thank you for clearing it up about mortgage rates!
Jesse W.
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.