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.