THE FED RATE CUT
By Charlie Ragonesi, Homes - Big Canoe, Jasper, North Georgia Pros
(AllMountainRealty.com)
There are tons of blogs and analysis about the Fed rate cut. There is anticipation of a new rate cut next week. But consumer do not understand the relationship of the rate cut to mortgage rates.Most consumers think a rate cut in the Fed funds market means lower mortgage rates. That is not always the case. In fact this week we saw rates initially go down and them bounce back up. As Realtors in our news letters and information to clients it is important to explain to them that the Bond market has more of a direct impact on mortgage rates. Many buyers especially first time buyers are sitting on the fence waiting for that next rate cut to get them a good mortgage on a home. Many budget minded folks are floating their rate instead of locking.For our sellers we must make them price realistica...
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