The Federal Reserve cut interest rates in September as most people expected. However, that doesn’t mean that mortgage rates will go down either since they are not inextricably linked. This was evident in 2003 when the Fed adjusted interest rates thirteen times over a six-month period, eight times down and five up, but without affecting mortgage rates. Consumers don’t always understand this and are more likely to be suspicious of lenders if mortgage rates don’t fall after a Fed rate cut. Mortgage rates are affected by how investors feel about inflation over…
Real Estate News – The Good, the Bad, and the Pretty
