The Perfect Storm: Fed Delivers Emergency Rate Cut-

federal_reserve_logo_standard.jpgThe Federal Reserve lowered it’s benchmark interest rate in an emergency move for the first time since 2001 after a tumbling international markets slumped as much as 7% on Monday.  The Central bank lowered the overnight lending rate to 3.5% from 4.25% rather than waiting until the scheduled Fed meeting on Jan 29-30th.

 

Keeping it simple, what this means for us the consumer is “The Perfect Storm”. As money flows out of Stocks with the market down as much as 464 points in pre-market trading, the funds flow into the safety of bonds thus keeping consumer borrowing rates at all time lows.  The 30yr conforming interest rate was as low as 5.125% touching all time lows. Check back for an afternoon update on consumer interest rates.

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