Mortgage Rates Impacted by Federal Rate Cuts

Posted by admin on January 24th, 2008 at 03:53am

Rate Cuts Impact Mortgage Rates
ORLANDO, Fla. (WOFL FOX 35)

A day after the Federal Reserve made an historic rate cut, mortgage rates also fell to near record lows. Short-term rates aren’t usually tied to long-term ones like 30 year fixed mortgages.

But the surprise cut Tuesday morning could mean it’s time to refinance. Mortgage rates have fallen in the last 30 days, but are now in the low 5% range.

FBC Mortgage spent the day answering a flood of calls from customers about what to do. They say homeowners could end up cutting monthly payments by refinancing at a lower rate. Rob Nunziata of FBC says, “they’re going to be able to save money every month.”

Lower rates could also help more people afford to buy a home and help boost the housing market. Nunziata says rates are near historic lows.

“Rates today are actually as low as they got back in mid 2003 when we saw the rates the lowest they’ve been since they started tracking mortgage rates,” he said.

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