Mortgage News and Notes

Federal Reserve drops rate by .25% - No effect on mortgage rates

September 27th, 2019 2:40 PM by Steven Hofberg

The Federal Reserve cut short-term interest rates last week by 0.25%, to approximately 2.00%. As regular readers of our newsletter have learned, short-term rates (in this case the federal funds rate) do not necessarily affect longer term rates such as mortgages. This holds true of the past week; mortgage rates, which have risen slightly in the past couple of weeks, looked at the Fed’s move and just shrugged. Not much movement at all.

 

Factors having a greater effect on mortgage rates include trade tensions, slowing global growth and, currently, some recent positive housing data. This week’s recommendation is simple; it’s not wise to extrapolate from the Fed to the mortgage market. The better strategy is to check with Margie to see where rates stand. She will be happy to run the numbers for you.

Steven H Hofberg, Operations Manager

Posted by Steven Hofberg on September 27th, 2019 2:40 PM

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