An Industry Update from Larry Bsharah, President of John Adams Mortgage
The Fed did as expected today and lowered short term rates by .25%.
What does this mean? It means your short term rates (credit cards, car loans, Home Equity loans) just became a little cheaper. It also means a little less interest in your savings too. This does not necessarily mean long term rates (30, 20 and 15 year fixed rate mortgages) will be decreasing. Everyone was expecting this so the cut was already built into the market.
Long term predictions are that long term rates (mortgage rates) will remain at today’s levels (possibly lower) through 2020. It is a great time to list a home and buy a home.