I heard a news about Federal goverment lowered mortgage rate by 0.5%, is it true? Who is qualified for this benefit?
We get our loan from a mortgage company.
2 Comment(s)
It is not true.
Mortgage interest rates are determined on the open market and not fixed by any agency.
The Fed lowered the funds rate by .5%. That is an interest charged by one bank to another and has some effect on other rates because the cost of funds to the banks are cheaper. But the effect on long term loans like housing loans would be very limited.
It may help the economy maintain some strength and help job growth. But the federal government does not control mortgage rates at all. The Federal Reserve does not control mortgage interest rates at all.
The Fed dropped the prime rate by .50. Those that will see an immediate effect are customers with home equity lines of credit, credit cards, and variable rate products. Unfortunately, this does not lower the fixed rate interest rates for mortgages.
It is not true.
Mortgage interest rates are determined on the open market and not fixed by any agency.
The Fed lowered the funds rate by .5%. That is an interest charged by one bank to another and has some effect on other rates because the cost of funds to the banks are cheaper. But the effect on long term loans like housing loans would be very limited.
It may help the economy maintain some strength and help job growth. But the federal government does not control mortgage rates at all. The Federal Reserve does not control mortgage interest rates at all.
glenn | Jun 21, 2009 | Reply
The Fed dropped the prime rate by .50. Those that will see an immediate effect are customers with home equity lines of credit, credit cards, and variable rate products. Unfortunately, this does not lower the fixed rate interest rates for mortgages.
yourmtgbanker | Jun 23, 2009 | Reply