The Feds dropped the prime rate yesterday. Does this mean long term rates are coming down? The prime rate does not equate to an equal drop in long term rates. However, when the prime rate goes down it is indicative of negativity in the market generally speaking. So long term rates could see some reaction.
What I want to write about today is how lower long term rates kick start a refinance market, even if the rates are marginally lower. When we see long term rates come down some lenders, particularly the larger ones will start marketing with (5 comments)