I heard that Federal lowered mortgage interest rate by 0.5% who are qualified for this benefit?

goofyjr2004 asked:


I heard a news about Federal goverment lowered mortgage rate by 0.5%, is it true? Who is qualified for this benefit?
We get our loan from a mortgage company.

Kelly

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2 Responses to “I heard that Federal lowered mortgage interest rate by 0.5% who are qualified for this benefit?”

1. glenn Says:
   May 28th, 2009 at 2:56 pm

   Tyrone

   It is not true.

   Mortgage interest rates are determined on the open market and not fixed by any agency.

   The Fed lowered the funds rate by .5%. That is an interest charged by one bank to another and has some effect on other rates because the cost of funds to the banks are cheaper. But the effect on long term loans like housing loans would be very limited.

   It may help the economy maintain some strength and help job growth. But the federal government does not control mortgage rates at all. The Federal Reserve does not control mortgage interest rates at all.

2. yourmtgbanker Says:
   May 31st, 2009 at 6:46 am

   Bernice

   The Fed dropped the prime rate by .50. Those that will see an immediate effect are customers with home equity lines of credit, credit cards, and variable rate products. Unfortunately, this does not lower the fixed rate interest rates for mortgages.