I am in the market to buy a house and was wondering if todays rate cut by the fed would have any impact on a mortgage
2007-08-17 06:07:27 · 4 answers · asked by mountaineermatt 1 in News & Events ➔ Current Events
Sorry to say, the Fed rate decrease on the
discount rate is only for the Big Boys - Banks. Meaning the banks can borrow money at a lower rate, but NOT consumers. You will not benefit from this rate change.
This does nothing to lower mortgage interest rates. NOR does it help people with sub prime adjustible rate mortages. Again, it only means that banks can borrow money cheaper. $516 billion in subprime loans are getting ready to be re-set upwards. It will not be pretty.
2007-08-18 09:53:49 · answer #1 · answered by lulu 2 · 0⤊ 0⤋
Not much. Mortgage rates aren't necessarily dependent on the Fed rate. One little move like this probably won't affect the actual mortgage rates at all.
2007-08-17 06:13:44 · answer #2 · answered by thegubmint 7 · 0⤊ 0⤋
It means that there is a chance that you could get a lower rate on your mortgage.
2007-08-17 07:30:42 · answer #3 · answered by Peter Pumpkin Eater 5 · 0⤊ 0⤋
you are out of luck my friend.
2007-08-17 15:43:58 · answer #4 · answered by Anonymous · 0⤊ 0⤋