Fed Rates to Lower?

The Charlotte Observer published an artice this morning in which they noted that Bernanke has stated that the Fed is ready to lower the rate again should the need arise. The article had an overall feel to it that this would happen sooner than later.

This is great news for credit card holders, home equity line owners and some short term ARM mortgage holders. The Fed rate is most applicable to the Prime Rate which many of these types of loans and credit are based. However, for those of you seeking a 30 year fixed mortgage, do not expect that this type of rate cut will impact the overall mortgage industry.

Bonds not Fed Rate

30 Year fixed mortgage rates are normally based on the yields of the 10 and 30 year Treasury Bonds. Their performance on the Bond Market is what will determine the pricing for mortgage rates, especially your longer term rate programs.

The bottom line is this… Make your move now. 30 Year mortgage rates in Charlotte are at all time lows! Now is the time to lock a rate and buy or refinance your home! Don’t wait for some magical rate drop… I doubt you will see that materialize.

Apply now and lock in the best mortgage rates in Charlotte now!

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