09/18/2024
“NO – Mortgage rates did NOT go down today by 0.5%. YES - the FED cut their lending rate by 0.5%. So, why didn’t mortgage rates automatically go down by the same amount?
The FED Funds Rate is a cut to shorter-term lending (credit cards, car loans, lines of credit, etc…). Despite what you will hear on the news and social media, this is not directly connected to mortgage rates. Mortgage rates are based on daily economic factors and while there has been no change to the FED rate in over a year, mortgage rates are actually TWO PERCENT LOWER than they were last fall. We are always ahead of the FED!”
Mark Baker
SWBC Mortgage
