The Fed Slashers Rates to 0% - What Does This Mean for Mortgage Rates?

The Fed Slashers Rates to 0% - What Does This Mean for Mortgage Rates?

Today, the Federal Reserve made it's biggest single-day move ever!  They slashed their benchmark rate to near 0%.  But, this cut doesn't necessarily mean a drop in mortgage rates. 

Shorter-term debt such as credit cards and home equity lines of credit will be more directly affected by these cuts since they’re tied to a bank's Prime Rate, which is directly affected by the Fed's rates.

However, the Fed also announced a return to “Quantitative Easing,” (QE) which means the Fed will be purchasing government bonds and mortgage-backed securities. This WILL have a positive effect on mortgage rates. The $700 Billion in QE buying is a huge amount so keep an eye on mortgage rates for a refinance opportunity in the near future.

What Should I Do now?
GET READY!!!  Make sure you have all of your information ready to go in case rates fall.  Everybody is going to be trying to refinance so the mortgage industry will be swamped with refinance requests. (It’ll be like trying to find a bottle of hand sanitizer today!)

Call me at 708.473.7688 or e-mail me for a “Refi Readiness” kit so you can get prepared today!