Interest Rates

Yesterday the Fed. cut the rate yet again….

The most frequently asked question I hear is how will it effect mortgage rates?  

The majority of financial advisers and loan officers I have spoken to have reaffirmed my opinion.   Fixed-rate mortgages, for the most part, do not change as a result to a cut in the federal funds rate.   We are hearing that this cut will have no impact on long-term mortgage rates.   There is some good news for adjustable rate mortgages.   These type of mortgages seem to be more responsive to the Federal Reserve decisions on rates.

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