Moore Mortgage Solutions

    Today, the Fed decided to cut the Fed Fund Rate by .25%, making the Fed Fund Rate 4.5%.

    What does this mean to the consumer? Your home equity line of credit, if based on the Prime Rate (Fed Fund Rate + 3% equals Prime Rate) and short term adjustable rate loans based on LIBOR index will see an immediate reduction in the interest rate in the coming weeks.

    Mortgage loans that have fixed rates and adjustable rates with longer terms are not directly affected by this cut. These rates are tied closely to the Mortgage Backed Securities that are traded on the Bond Market.

    Tomorrow the Personal Consumption Expenditures (PCE) and Core PCE will be released.

    Until then, make everyday an inspired one!

Betsy Moore

betsy@mooremortgagesolutions.com