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Fed Rate Cut!!

Hey everybody, it’s Ken at the Capitol Mortgage Group. So the Federal Reserve dropped rates a quarter of a percent last week. How does that affect your mortgage rate? Not really much at all.

The Federal Reserve does not control mortgage rates. They do not price or dictate where banks price their mortgages. However, we were very much concerned or interested rather in the Federal Reserve’s comments about where they think the Economy is going afterwards. Those comments could affect mortgage rates more so than the actual reducing of the fed funds rate.

So what does that leave mortgage rates? Still at historical levels. In fact, I have several clients now that I’m refinancing that just bought maybe a year ago, a little bit more than a year ago. They’re refinancing now and saving 15, 20% on their mortgage payment while paying zero closing costs.

I’m also talking to lots of buyers right now that are really excited to see how much buying power they have after we shopped their loan through 50+ different lenders to get them the best deal. So check it out. where you can price out your own mortgage loan and you’re going to find a better way for your home loan.

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