March 26, 2008 | 2 Comments

But the Federal Funds Rate Dropped | Why no Mortgage Rate Drop?

I hear the conversations when the Fed’s drop the rate and everyone believes that mortgage interest rates will come down too. Not the case.

I am going to give you a link to a very knowledgeable Realtor who has recently written a blog about this very subject.

Bill Gasset sells real estate in Metrowest Massachusetts. Here is the article that will explain in really simple terms what happens when the Federal Funds Rate Drops. 

Federal Funds Rate Drop v.s. 30 Year Fixed Rate Mortgages

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Author:Jo Soss

:: About the Author :: Jo Soss is the designated Broker and owner of Homefront Realty in Bremerton, Washington. Selling real estate in the Puget Sound area since 1994 she has vast knowledge of all aspects of a real estate transaction. Being a down to earth, service oriented professional you can expect the service you deserve from her.
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2 Responses to “But the Federal Funds Rate Dropped | Why no Mortgage Rate Drop?”

  1. Karen Rice, Pike Wayne PA Real Estate
    March 28, 2008 at 6:58 am #

    Good info – I read Bill Gasset’s article as well – I agree it’s a good explanation.

  2. Holliston Massachusetts Real Estate
    April 3, 2008 at 8:30 am #

    Hi Jo – Thanks for the link to my post. I am glad you have found it to be useful. It is funny how there is such a misconception about how mortgage rates work.

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