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Fed Funds Rate to 0% Whats next for mortgage rates??

Everybody, it’s Ken at the Capitol Mortgage Group. You’ve probably heard the exciting news. The Federal Reserve slashed the fed funds rate down to 0% last night, and by now you’ve probably seen some clever ad that says mortgage rates are now 0%. Well, the Federal Reserve does not actually control mortgage rates. They influence short term rates. So you’ll probably see a better rate on your credit card, on your home equity line statement, but we’re not going to see a 0% interest rate on your mortgage. Baseline mortgage pricing comes from a very complex mortgage-backed securities market. Those traders at times do react to the fed’s decisions or the overall health of the economy, but, again, the Federal Reserve does not control mortgage rates.

We are seeing rates at an all time low, not 0%, but still at an all time low. So if you’re thinking about buying a home, you’re thinking about refinancing, give me a call, 362-7600. Check me out, capitolmortgagegroup.com, where you can price out your own mortgage loan. My firm will shop you’re mortgage request with over 55 different banks to make sure you’re getting the best deal on your mortgage, whatever the rates may be. Capital Mortgage Group, a better way for your home loan.

 

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