Yesterday the Fed dropped a key rate to .25%. This rate is not the mortgage rate many of us are used to seeing and chatting about, but rather the overnight rate that banks lend each other money. While this should lower long term rates a bit, I don’t think they will go a whole lot below 5%. Right now the rates are at a 30 year low.
As always, I am going to defer to Tom Vanderwell over at Straight Talk About Mortgages to explain in detail what happened yesterday and where it is all leading.
Please check out this post The Fed Translated.…. for an indepth analysis.
