Will mortgage interest rate drop if feed cuts rate again?
Answers:
Yes, but it ually takes going on for 2-3 months or more for the effect to hit mortgage interest rates.
NO. They haven't so far. The fed rate cuts DO NOT directly lower mortgage rates. In fact, rates are up since the concluding fed cut.
CNBC was talking in the region of the mortgage rates dropping again today.. Keep tuned,, They will go down.. DItech is 5.93% I heard on one of their ad today.
I disagree with the previous answer. Mortgage rates are being driven by inflation at this point, and those numbers save getting worse. Rates have climbed since the last feed cut.
The fed only controls outstandingly short term rates. Mortgage rates are based on longer permanent status lending, most closely indicated by the 10 year treasury yield. Watch the trend of that to see which instrument mortgage rates are trending.
The more the fed cuts, the higher mortgage rates will jump because of inflation pressures and fears. Sure, they may get better on any given day, but the trend will be up from this point forward.
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