Mortgage Rate Shoppers Question #3

These are “SIMPLE QUESTIONS YOUR LENDER ABSOLUTELY MUST BE ABLE TO ANSWER CORRECTLY. IF THEY DO NOT KNOW THE ANSWERS.RUN.DON’T WALK. RUN.TO A LENDER THAT DOES!”

When Bernanke and the Fed “change rates”, what does this mean. and what impact does this have on mortgage interest rates?
The answer may surprise you. When the Fed makes a move, they can change a rate called the “Fed Funds Rate” or “Discount Rate”. These are both very short- term rates that impact credit cards, Home Equity credit lines, auto loans and the like. On the day of the Fed move, Mortgage rates most often will actually move in the opposite direction as the Fed change. This is due to the dynamics within the financial markets in response to inflation. For more information and explanation, just give me a call.

Please contact me with any further questions.

[where: 85029]
[where: 98109]

No related posts.

No Responses to “Mortgage Rate Shoppers Question #3”

1. Interest Rates » Your Mortgage Planner 2.0 Blog | Your Mortgage Planner 2.0 Blog says:

   January 31, 2009 at 12:30 pm

   [...] Read the rest of this great post here [...]
2. Posts about Mortgage Market Report as of February 1, 2009 | Real Estate Market Reports says:

   February 1, 2009 at 11:17 am

   [...] Dakota and South Dakota. Their main market is to residences to professionals and recreational Mortgage Rate Shoppers Question #3 – myequitypro.com 01/31/2009 These are “SIMPLE QUESTIONS YOUR LENDER ABSOLUTELY MUST BE ABLE TO [...]