The Fed this morning cut the Federal Funds Rate by .75%. The cut which comes as a surprise move before their scheduled meeting on the 30th of this month brings the Fed Funds Rate to 3.50%. The Discount Rate, or the rate at which member banks can borrow from the Federal Reserve was also cut, down to 4%. With the government offering money to banks at lower rates we should continue to see favorable available mortgage rates offered to consumers.
The Libor, (London Interbank Offered Rate), which regulates the movement of many Adjustable Rate Mortgages is currently 3.71%, down from 5.15% a few weeks ago. This drop makes adjustable rate mortgages tied to this index a great deal in the mortgage market right now. Fed Funds Futures are still pricing in another 50 basis point cut at the Fed meeting still scheduled for next week, despite rising inflation.
With the Government’s best solution to keep things stable being dramatic rate cuts, many homeowners are finding this a perfect opportunity to refinance their mortgage rates that have adjusted up over the last year or two. Others who haven’t yet bought a home are finding that with the rates available today, moving in to an ownership position now would be more affordable than they thought. We should continue to see things maintain a low position or dip lower before rising. Remember to get the best rate you want to have your loan application process already underway before the rates begin to shift upward. Call me today 702-686-2036 to get started. We just need about twenty minutes to get you going.