UtahCribs Weblog

Real Estate, Homes, News, Statistics and more

Feds Rate Cut

Posted by UtahCribs, Real Estate, Homes on March 19, 2008

Well they did it again.  Feds cut the rate today three quarters.  Clients often ask me if this means that they can get THREE QUARTERS off their mortgages since the rate was dropped.  The easy answer is NO.  Mortgage rates don’t directly correlate with the fed reserve rate.  The fed rate is the rate at which they loan banks money and the rate at which banks will often do biz with other banks.

However, rates did drop about a HALF of a PERCENT today as a result of the fed rate cut amongst other things.  Once again this brings rates to a historic low.  Many people are holding off on buying their home in Utah.  However, this may prove to be a bad decision if rates go up anytime soon.  PRICE is not the only factor to consider when buying…….RATE on your loaned money can be a huge decision maker aCurrent look at 30 year fixed rate trends well.

To see current rates go to www.bankrate.com 


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