Effect of an interest rate cut on mortgage rates?

NickG asked:


The Fed has announced they may cut interest rates in the middle of March. I am currently working on getting a mortgage for a property I will close in mid-April. Should I wait to lock the rate until after the Fed announces the cut?

Brenda

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3 Responses to “Effect of an interest rate cut on mortgage rates?”

1. L.G. Says:
   May 21st, 2009 at 10:02 am

   Virginia

   Ask for a “down float lock rate.” That way, if the rates go down, so will your locked-in interest rate. Got this advice from Acorn Housing in connection with a transaction I’m considering. Makes sense to me.

2. seafood10 Says:
   May 22nd, 2009 at 6:13 pm

   Crystal

   fed cutting rates has no effect on the 15 yrs and 30 yrs fixed. only arm rate. i hope u are not stupid and get arm. most foreclosures out there are cuz by arm rates.

3. Tony D Says:
   May 25th, 2009 at 9:08 pm

   Earl

   With the threat of inflation scaring the bond traders these days, another rate cut by the Fed would likely cause mortgage rates to rise. Don’t get greedy. Cut your best deal now.