Posted To: MBS Commentary

The Fed announced an emergency rate cut of 50bps today (0.50%). Great! So your mortgage rate could be 0.5% lower, right? WRONG! And to be clear, that’s not one of those all-caps, bold lettered internet claims made by some guy with an agenda who may or may not be worthy of your trust. It’s bona fide, verifiable documentable, incontrovertible fact. Those who fail to understand it (or at least accept it) really need to read the rest of this article. The crux of the thesis, with more caps-lock and emphasis: THE FED DOESN’T SET MORTGAGE RATES. Here are several recent examples of the same thesis for those that really want to dig in to the underlying science and track record: http://www.mortgagenewsdaily.com/consumer_rates/921872.aspx http://www.mortgagenewsdaily.com/consumer_rates/922137.aspx http…(read more)

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Source: Mortgage News Daily