Will the FED Cut affect consumer interest rates today?

Will the FED Cut affect consumer interest rates today?

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With the FED poised to cut the “Fed funds rate” today by a quarter to a half point what does that mean for your interest rate?  Historically as a Mortgage Broker my phone will start ringing around 2:30pm after the 2:00pm announcement with clients asking to refinance their current mortgage stating, “Rates went down by a half of a percent today”.  This is true to a degree, however, it is untrue that consumer rates went down by the half or quarter spread across the airwaves today.

 History of the past two FED rate cuts shows that when the market approves and money comes out of the safety of the 10yr bond and into the stock market driving yields higher intern rising consumer rates.  Here is a great article provided by CNBC with a description of how money reacts to FED policy.CNBC

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