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