if the 4.5% rate for morgage's just passed by the Federal Govt. are good for refinancing or just to buy a house?
2007-11-01 16:54:09 · 4 answers · asked by Meeshmai 4 in Business & Finance ➔ Renting & Real Estate
Mortgage rates were not affected by the rate cut. The federal funds rate is the interest rate at which private depository institutions lend balances at the Federal Reserve to other depository institutions overnight.
A 30 year fixed rate mortgage is NOT at 4.5%. As of November 1, 2007 a good conforming rate is around 5.875%. If you wanted to speculate about the future of mortgage rates one would have to guess that they would rise as a result of this action by the fed rather than decline.
2007-11-01 18:25:07 · answer #1 · answered by Anonymous · 1⤊ 0⤋
I have not seen interest rate that low and just like the other guy said they are talking about the interest rate that banks have to pay on the money they (banks) borrow from the federal reserve. You have to question your lender on the interest rate. If the interest rate on a con 30 year fixed loan is 4.5% today - by the time you found a home to purchase - I could just about guarantee that interest rate would be different. That is why lenders lock in loans. (lock you into the interest rate) Good Luck!
2007-11-02 00:53:37 · answer #2 · answered by ziggymo2 2 · 2⤊ 2⤋
The Fed rate cut won't affect mortgages. Mortgage rates are not based upon the Fed, but upon long term Treasuries and the like.
2007-11-02 00:07:55 · answer #3 · answered by acermill 7 · 2⤊ 0⤋
That is the rate the government charges the banks. They have to charge us more as they need to pay to manage the funds as well as make a profit themselves.
2007-11-02 15:39:40 · answer #4 · answered by Anonymous · 0⤊ 0⤋