ABBA First Mortgage News

Feds reduced the bank rate by .25%- Now what?

We’ve been waiting to see what the Federal Reserve Board would do at their monthly meeting under the direction of Board Chairman Jerome Powell.  Would they hold the bank rate steady?  Or reduce it slightly?  Or lower the rate by a half point which would be a true stimulus to the economy and trigger a mini re-fi boom?  The answer came yesterday as the Feds met and played it safe and for the first time in years lowered the internal rate that the banks use to “exchange” money between banks.  It also affected the short term rates for adjustable rate mortgages, HELOCs, and all short term credit such as credit cards.  The mortgage interest rates will also feel the effect of this rate lowering, but not to the extent that it may have if there was a larger decrease as was hoped for by many in the mortgage industry.  However, the interest rates are close to being the lowest that they’ve ever been in the history of mortgages and the suggestion is to take advantage of this opportunity while the getting is good.  Call ABBA First for the up to the minute rates available for you as the market is always moving and you may catch it at the bottom when you call!  We’re waiting to hear from you at 910-332-0650.

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