interest rates: Home Loan Rates and the Fed Funds Rate
- 06/04/08 04:30 PM
How are home loan rates determined? A common question I have heard from my clients over the last few months is if a drop in the Fed rate will lower the home loan interest rates. The short answer is no. In my experience, home loan rates actually tend to fall prior to a Fed rate cut and rise after it is announced. That leaves the question of exactly what affects the interest rates on consumer home loans. The answer is no where near straight forward. The Home Loan Process When we start to look at loan rates, we need to understand … (0 comments)
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How are home loan rates determined? A common question I have heard from my clients over the last few months is if a drop in the Fed rate will lower the home loan interest rates. The short answer is no. In my experience, home loan rates actually tend to fall prior to a Fed rate cut and rise after it is announced. That leaves the question of exactly what affects the interest rates on consumer home loans. The answer is no where near straight forward.
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