03/17/2020
I've gotten a lot of questions over the last few days regarding MORTGAGE RATES (yes; according to Freddie Mac, rates are close to all-time lows):
The Fed cutting interest rates is a short term overnight bank to bank rate. This does not have a direct impact on mortgage interest rates. The cut will lower rates on credit cards, home-equity loans, and other consumer loans that are affected by the prime rate.
Mortgage rates are based on the MBS (mortgage-backed securities) market which is independent from the treasury bond as well as the stock market. The MBS typically react within certain tolerances of the treasury bond and the stock market.
Most everyone should look at refinancing because, according to Freddie Mac, interest rates are close to all-time lows (actual lows, not the typical advertising term ;))
I encourage you to get in touch with me to find out what we can do. Even if I'm not who you would use, I'm more than happy to answer any questions!
