What will you do with your 50 bps Fed Rate Cut?

The White House gave us FHASecure, the Fed gave us 50 bps, I am sure the Congress is working on something to say they helped out. Time to get to work and help some borrowers!

What will you do with your 50 bps?

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3 responses to “What will you do with your 50 bps Fed Rate Cut?

  1. What 50 bps? The rates skyrocketed today. The borrowers are all expecting better rates, and rates got slightly better Tues and Wed, but now on Thurs the rates have worsened to the point where they are worse than the pre-rate-cut rates.

    So where is my 50 bps?

  2. I am going to wait one more round when I expect the Fed to drop rates another 50 bps and then refinance the house I bought last year. Hopefully Ben plays ball.

  3. Thing is, unless you are refinancing into a HELOC, there is no reason to believe that the mortgage rates are going to go down as a result of the Fed rate cuts.

    Mortgage securities compete with the rest of the stock market for investor funds. Mortgages do great when the rest of the stock market tanks, which pushes investor money into more reliable securities like mortgages.

    So the rates were cut, the stock market rallied, and then rates got much worse on Thursday and Friday, about a 1 point cost worse than Wednesday.

    But HELOCs went down by .5% rate, so there you go.

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