Rich Lanes, Mortgage Broker

09/19/2025

So what's going on with the Fed dropping Rates? How much did mortgage rates improve? I get a lot of these questions every time the Fed takes action.

The Fed and mortgage market are affected by the same economic news but do not directly impact each other. The difference is that the mortgage market reacts real time to market news and the economy. Mortgage rates change daily, sometimes 2-3 times a day based on economic news. The mortgage market follows the trends for treasury bonds. When the stock market goes up quickly you will likely see an increase in rates as folks sell their bonds to invest in the stock market. The supply increases and rates go up to entice investment into the bonds. When the stock market takes a big fall folks invest in bonds as a safe haven, the supply diminishes and rates fall.

Fed rates affect more of the short term loans such as auto rates, home equity lines of credit, and other short term personal loans.

As an example, since the average interest rate high point of over 7% back in Jan 2025 rates have already fallen about 0.75% to an average of about 6.25% yet the Fed has only dropped rates 0.25%. The blue line below represents 30 year fixed rates and the green line is the 15 year fixed.

I hope this helps!

06/26/2025

Make that 29 States! See www.RLanes.com for licensing details

05/30/2025

Wooo Hooo - Now licensed in the 24 green states!

10/02/2024

Why didn't mortgage rates drop when the Fed dropped rates?

06/16/2024

Wooo Hooo, rates have finally started dropping! If you know of anyone who has taken out a home loan in the past year or so this might be a great time to consider a refinance. I would greatly appreciate any referrals that come my way!

01/26/2024

This is an example of why I love what I do. I received this letter a few weeks back for some help I gave a young lady who reached out to me for help with her home. I love knowing I make a difference.

01/20/2024

Wooo Hooo, with interest rates continuing to come down there is a good chance that anyone who purchased a home between last June & last fall could refi for low to no cost and save some $$. If fees were paid to buy the rate down it might take a bit longer but I would be happy to monitor the market and let you know when it makes sense! I would greatly appreciate anyone you can send my way. Thank you in advance!

12/22/2023

Thank you all for the referrals over the last few weeks... I have more deals closing in the next 5 weeks than the last 6 months of 2023!

12/19/2023

12/18/2023

One of the biggest questions folks have about getting a mortgage is "Should I pay fees to get the rate and payment lower, or should I chose a slightly higher rate and reduce the cost?". I LOVE this question and it is one of my favorite things to help you figure out! Let me put a few considerations out there:
- The difference in cost from one rate to another is typically between 1/4% to 1/2% in fee for every 1/8% the rate is higher or lower. Lowering the rate will cost more in fees, often referred to as "points". This means that if you choose the lower rate it may take 2-4 years before the savings due to the lower rate offsets the higher up front cost.
- If the rate is set high enough there may be enough "lender credit" to cover all the 1 time cost of the loan, making what some refer to as a "no cost" loan... But there really is a cost, it is the slightly higher rate. Due to other factors (such as lower loan amounts or investment properties) the "no cost" loan option may not be possible.
- If rates are towards an all-time low and you plan on keeping the home/loan for 3-4 years or more then buying down the rate may be your best option.
- If rates are high and are dropping (as they are now) then a lower cost or "no cost" loan is probably the best way to go as you can follow the market down. Our lenders typically require you to hold onto your current loan about about 6 months (or they send me a bill for losses they may suffer from an early payoff!), so if rates keep dropping after your refi is closed we can refi again for hopefully "no cost" once again, then when the market is close to the bottom you may choose to buy the rate down then!
- If you have a VA or FHA loan then the built in minimum wait time between refis is 210 days.
- On a purchase the lender credit for the slightly higher rate can be used to offset the cash needed to close a purchase. Often it can be enough to cover all but the down payment!
- There are so many more considerations!! Call me to help figure out what is best for you!!