FEDERAL RESERVE CUTTING RATES AND WHAT IT MEANS
The Fed announced yesterday a .5% rate cut to "short term" interest rates
Here is what this all means:
~Fed cutting rates is a short term overnight bank to bank lending rate and does not have a direct impact on long term Mortgages.
~It will lower rates on Home equity line and credit cards
~It COULD move mortgage rates lower but they could also go up higher on the news. If the stock market rallies this week on this news, it could cause long term rates (mortgages) to increase.
~What is missed on the headlines as it pertains to mortgage rate is the FED is starting another round of Quantitative Easing (QE). QE is when the|