The Federal Reserve chose to cut interest rates by 75 basis points today, or 3/4%. This is the 6th straight cut since September. So, what does this mean for you?
The 3/4 % interest rate cut affects short-term rates, like credit card rates, auto loans and home equity lines of credit. The purpose of this reduction is to entice the consumer to spend more money in our struggling economy. Doing so should boost our economy and provide some confidence to both the consumer and investors. If you currently have short term credit, you should begin to see a reduction in your payment.
How does this impact my mortgage, you may ask? This short term rate reduction does not impact long-term rates directly, however, most of the time it means that mortgage rates will begin to gradually increase from here. Mortgage rates are still very attractive and could save you a lot of money, just by getting a better rate. If you have an ARM (Adjustable Rate Mortgage) or a high rate, you should seriously consider refinancing your mortgage, before they tick up further.
Take advantage of the current mortgage rates while they are still historically low. Whether it be purchasing that new home or simply refinancing, I can help or direct you to someone who can. Check out my website at www.goneselling.com, where I update the mortgage rates daily.
Enjoy Today!
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1 comment:
Very interesting Real estate blog. Hope it will always be alive! Thanks for this
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