At this rate there will be nothing left to cut soon. The prime rate is at 1% now, which is the lowest it has ever been. The only other time it was this low was in the 1950’s when Eisenhower was President. But desperate times call for desperate measures (and we assure you the Feds are desperate).
Below is a video analysis of all this activity today. Just remember, as we posted on Oct. 16, the Feds lower the prime rate does not usually mean lower mortgage rates. In fact, as is more typical, rates rose today. Mortgage rates will typically move more on rumor with the Feds then it will with what they actually do. This cut was fully expected and rates, as a result, have been going up quickly over the last week. If the Feds would not have cut the prime rate then mortgage rates would have probably gone down. Our economy moves on emotion (more than you can imagine).
We are always happy to walk you through this odd part of our economy. Call us anytime.