Arizona Mortgage Rates for October 31, 2008
Mortgage Related News
On Wednesday this week, the Fed lowered the federal funds rate .50% to 1% — matching the lowest level for the overnight bank lending rate since June of 2004. While some investors were hoping for a .75% or even a 1% cut, this cut has an impact on a variety of loans including home equity lines, credit cards and business loans.
But as others have pointed out, a rate cut by the Fed to the federal funds rate doesn’t necessarily mean that overall mortgage rates go lower.
The Fed cutting the federal funds rate is one tool that the Fed uses to try to spur economic activity in the economy - and with the holiday season right around the corner and with consumers tightening their spending only hindsight will be able to tell for sure how much help the rate cut will be.
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