09/18/2024
First Mortgage rates did not decrease by .5% today.
The Fed Fund rate (Prime index) was reduced by .5% today.
Fed Fund rate directly affects HELOCs and other consumer debt. Mortgage-backed securities directly affect first mortgage rates (conv, FHA, VA, etc) Think of these as "sisters" - separate things, but a reduction with the Fed Fund leads to a positive reaction with mortgage-backed securities, leading to a slight continued reduction in first mortgage rates.
