Archive for the ‘Federal Funds Rate’ Category

Inflation is gone, gone, gone, and we are free! For now…

January 15, 2009

It is good to feel free. Free of some bad news.  Free from some worry. I mean, we can’t get through a single day without hearing bad news about something occurring in the world, our country, business, etc.  It seems we can never catch a break.  Luckily for everyone, inflation worries are gone for the time being. 

Inflation was all the rage last year as oil skyrocketed to record highs.  Since oil hit $140+ a barrel, its prices have plummeted to below $40.  This helped bring inflation figures back into an acceptable range for the Federal Reserve and gave them a green light to continue cutting the Federal Funding Rate.

Currently, the Federal Funding Rate is essentially at 0%.  Based on recent comments from Bernanke and Lockhart, it seems the Fed rate will sit at this level for the foreseeable future.  Their biggest concern? – To quote Bill Clinton, “the economy stupid!”  Honestly, who can blame them? 

Since the economy is our number one concern, and inflation figures are lower now than they were in 2008, then we should push full steam ahead and not worry about inflation anymore, right?  Right? …

As nice as that sounds, we can’t totally discount inflation.  A couple of things to consider:

  – Record high oil and food prices influenced inflation readings last year.  Most analysts agreed that $140+ oil was unsustainable and that the prices would fall, and boy did prices fall!  Now at $40 (or less) a barrel, those same analysts believe that oil is too low and that an adjustment will be coming down the line.  If the lower inflation readings are largely due to the dramatic drop in oil prices, expect inflation numbers to creep back into the headlines if oil prices increase throughout the year. 

  – The Fed’s main weapon for attacking a recession (lowering the funding rate) is gone.  Now what do they do?  Before the Fed rate reached 0%, the strategy was providing money at a cheap rate to stimulate the economy.  Now the policy is shifting to ensuring there is sufficient capital in the market.  How do you keep sufficient capital in the marketplace?  You print money!  Since the U.S. is not on a gold, silver, or any backing standard, the Feds can print all the money they want and deem its worth.  There is one problem with this strategy.  As more money enters the market, it loses some of its value – inflation could strike here too. 

  – The Dollar has made considerable strides against foreign currencies from their record lows of 2008.  The rate cuts offered by the “central banks” of the world have also helped to increase the value of the Dollar (decreasing inflation).  But what happens if the Fed rate stays at 0% for an extended period of time?  Will foreign investors once again leave the Dollar for the Euro or the Pound whose central banks are not at 0% in order to make higher yields on investment?  If so, this would put added pressure on the Dollar by reducing its value.  As the value of the Dollar decreases, expect inflation to increase.

While the Feds have done an admirable job combating this economic downturn, we cannot turn a blind eye on inflation.  If the Feds continue on their course of action – keeping the Fed rate at 0% along with ensuring there is plenty of capital in the market – we can expect to see inflation figures rise as 2009 progresses.  Once inflation goes up, it becomes tough to get it back into an acceptable range.  But what is the Fed to do? What I wrote last year still applies today; the Feds continue to find themselves in the unenviable position of being between a rock and a hard place. 

For more information on inflation and its importance to the Feds, see previous posts Between a rock and a hard place, Lurking under the surface, and Isn’t it ironic.

Clay Jeffreys is a Mortgage Consultant with Hillside Lending, LLC and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.” Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing. For more information about available programs and interest rates, please visit www.hillsidelending.com.

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A year in review

December 31, 2008

What a year it has been! I am sure many people are glad to see 2008 coming to an end. With such a hectic and unprecedented year, I thought it would be a good idea to take a look at what we’ve been through and where we could be headed.

– Tightening guidelines for lenders: 2008 saw the end of many loan programs that quite honestly never should have existed. Lenders didn’t stop there. 100% financing is gone and so too was 97% financing for a better part of the year. There are now rate adjustment for credit scores in the low 700s when “back in the day” any score over 700 (sometimes 680) was considered as good as it gets.

– Inflation appears and disappears: 2008 also witnessed some of the highest inflation figures in the last 10-20 years. Inflation was pressured by several factors including increases in food costs, high gas prices, and cuts to the Federal Funding rate. Inflation put pressure on interest rates and caused them to rise into the mid to high 6% range. Rates looked to continue to climb until…

– Oil prices go crazy: The biggest influence on inflation this year was high oil prices (over $150 a barrel) which created high gas prices (over $4 a gallon). Once the balloon burst on $150 oil, the price per barrel plummeted to its present levels of less than $40. The drop in oil caused the price of gas to go from $4.00+ to $1.61 a gallon (according to AAA) at the time of this post. With the price of gas lower than it has been in several years, inflation numbers decreased easing the pressure put on interest rates allowing them to fall back from their yearly highs.

– Bailouts, bailouts, and more bailouts: 2008, the year of the bailouts. It seemed that almost every company that came asking for a bailout got it in 2008. The taxpayers got a bailout in May, Fannie Mae, Freddie Mac, AIG, an endless number of banks, the big 3 in Detroit, and more got bailouts over the rest of the year. The U.S. government went crazy (Democrats and Republicans alike) offering money to try and stimulate the economy.

– The Federal Reserve: 2008 was a busy year for the Feds as they continued to cut the Federal Funding rate down to its present level, which is virtually at 0%. The Feds main weapon (cutting the Fed rate) for stimulating the economy is now gone since the Federal Funding Rate cannot go any lower. Because of this, the Fed shifted gears to prop up mortgage backed securities. In November, the Federal Reserve bought billions of dollars of mortgaged backed securities causing rates to drop a half point over night. At their most recent meeting, they indicated they would continue to buy more mortgage backed securities, and rates got as low as 4.5% before rebounding higher.

As we end 2008, I could go on-and-on with this post about the details of every bailout, goals of Obama, interest rates setting yearly highs and then historical lows, property values declining at alarming rates in some parts of the country, etc. To sum it all up, 2008 was an exciting, tough, and hard fought year.

Now for the million dollar question, where exactly are we going in 2009? Some are projecting growth in the second half of the year. Other are saying “doom-and-gloom” for all of 2009. A more realistic thought, at least for the time being, would be to expect more of the same – bad economic news, volatility in both stocks and bonds, more attempts by the Federal Reserve and Washington to help stimulate the economy, and endless promises and blame shifting by politicians.

If moving toward a home purchase or refinance in 2009, be sure keep in touch with a mortgage broker who follows the market and is up to date on all the changes taking place. If you are in the state of Georgia, I have a great referral for you :-). Keep reading into the “disclaimer” below for ways to reach me in order to get prequalified to purchase or refinance a home.

Happy New Year!!

Clay Jeffreys is a Mortgage Consultant with Hillside Lending, LLC and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.” Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing. For more information about available programs and interest rates, please visit www.hillsidelending.com.

nowhere to go for one rate

December 16, 2008

The Federal Reserve lowered the Federal Funding Rate by 0.75% today making its effective trading range from 0.00% – 0.25%.  The Feds also said that the rate would need to remain at this level “for some time.”

With the Fed rate almost at 0%, the Federal Reserve’s main weapon for stimulating the economy is now effectively off the table.  There is no more room for future rate cuts.  The Feds policy heading forward will be to ensure there is ample capital in the markets shifting the focus from the “price of borrowing money” to the “quantity of money available.”  Yes, that is right.  The Fed is going to start (literally) printing money. 

That subject easily deserves its own post (or posts).  For now, let’s focus on where will interest rates go from here?  The answer lies in the market reaction to today’s news. 

– Stocks typically respond favorably to Federal Funding Rate cuts, and today was no exception.  Stocks finished up over 350 points.

– Bonds typically respond negatively to Federal Funding rate cuts, and today was an exception.  Why? The Feds statement also indicated they would be purchasing more mortgage backed securities — the driving force behind interest rates.  With an increasing demand for bonds and no more future rate cuts possible, bond prices rose instantly and ended the day up over 100 points.

So, the questions… will rates get better?  should I lock in my rate today?  As volatile as the market is right now, no one knows for sure.  The answer depends on your own disposition.  If you have the stomach for it, wait it out and see what happens.  You could wind up with the best rate of anyone during this refinance boom OR miss out entirely.  If you prefer a sure thing, go ahead and lock in your rate to ensure you won’t miss out and enjoy all the monthly savings that come with your new mortgage payment.  Which option do you prefer? 

Clay Jeffreys is a Mortgage Consultant with Hillside Lending, LLC and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.” Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing. For more information about available programs and interest rates, please visit www.hillsidelending.com.

Finally, some good news

November 6, 2008

Finally, mortgage rates are catching a break.  Recently, several factors weighed heavily on rates and you can read about those here.  Even so, there are now many favorable signs for mortgage rates.  Let’s run through a couple of those.

– Stocks are cooling off:  After setting records days last week, some of those gains are disappearing and investors are moving back into mortgage backed security bonds (MBS bonds).  Why the cool on stocks?  Third quarter GDP numbers showed that the economy regressed.  Some analysts argue that without the economic stimulus package in the second quarter, we may have seen GDP regression for consecutive quarters. Regardless of what the numbers show, most people feel we are already in a recession (see any article at CNN, MSNBC, FOX, etc.) and that is actually good news for MBS bonds and interest rates.

– Economic data:  All the recent economic reports have been terrible news for the economy, which (again) is great news for MBS bonds.  Bond prices increased over the past few days and interest rates are down below 6% again.

– Jobs report: While this is technically part of the “economic data” category, the Larbor Department’s Jobs Report is due out tomorrow.  It is expected to be really bad.  This would only continue the trend of poor economic data that is boosting bond prices and lowering interest rates.

– Bank of England and Eurpoean Central Bank:  These are Europe’s Federal Reserve entities, and they are finally cutting their equivialent of our Federal Funding Rate.  In fact, the rate of the Bank of England hasn’t been this low (3%) since 1955.  How does this help mortgage rates?  As Europe lowers their key rates, this hurts the value of the Sterling Pound and Euro.  As the value of European currencies declines, the value of the Dollar climbs.  A stronger Dollar reduces inflation and lowers oil prices – both are GREAT for MBS bonds.  This further enhances bond prices and helps push interest rates down.

– 200 day moving average: Previous posts on this blog discuss the importance of the 200 day movnig average.  Today, bond prices find themselves sitting above the 200 day moving average and that line is acting as a floor of support.  As long as bond prices stay north of the 200 day moving average, rates should stay below 6%.

Cheer up Eyeore, I'm sure things will get bad again soon!

Don't get too excited Eeyore, I'm sure things will be bad again soon enough!

 

So, some good news for rates.  It’s about time.  Sadly, good news for rates means bad news for the economy, but good news is good news right?  Well, if you don’t agree, don’t worry, in this market you probably won’t have to wait long for things to completely change!

That said, anyone looking to refinance should consider moving while rates are below 6% because there is no guarantee they will stay here forever.  For instance, rates for a 30 year fixed mortgage got as low as 5.25% one time this year – for only 3 hours in January.  By the end of that day, rates had climbed to 5.875%.

To ensure you never miss out on a rate drop again, sign up for myRateTrack.com.  MyRateTrack.com is an automated refinance monitoring service.  Answer a few questions about your current mortgage, put in a target refinance rate, and let it go.  When rates drop, you will receive an email from the myRateTrack notifier and you will never miss out again.  Email me to find out more infromation about myRateTrack.com and how you can sign up for FREE.

Clay Jeffreys is a Mortgage Consultant with Hillside Lending, LLC and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.” Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing. For more information about available programs and interest rates, please visit www.hillsidelending.com.

Keeping an eye on the Feds

October 29, 2008

 

Everyone is keeping an eye on the Feds today.  Rumor has it another half-point rate cut is in the works, which would bring the federal funding rate down to 1.000%.  The federal funding rate hasn’t been this low since June 2003.  What will all of this mean for interest rates?  Well, it isn’t good news.  

Taking a break from ruling Middle Earth, even Sauron wants to know what the Feds do today.

Taking a break from ruling Middle Earth, Sauron has his eye on the Feds.

Interest rates have climed recently due to other factors that include: 

          The credit crisis has forced investment funds to sell off their mortgage backed security (MBS) bonds to raise capital.  More bonds available in the market means their value decreases.  As we know from previous posts, when bond prices sink, interest rates rise.

          MBS bonds, once a safe-haven from stocks, are now seen as a higher risk.  Investors are moving into Treasury bonds and selling off MBS bonds.  Not to sound repetitive, but more bonds in the market decreases their value and increases interest rates.

          The emergency cut to the federal funding rate just three weeks ago has also hurt interest rates.  Since the rate cut, the MBS bond market is down almost 200 points and interest rates moved from 5.5% to 6.25%. 

 

Needless to say, another half-point cut today (which is a very strong possibility) will not be the best news for interest rates.  As the federal funding rate decreases, mortgage rates increase.  Considering all of these variables, things are not looking great for interest rates.

 

That said the initial reaction could be interesting.  MBS bonds have endured a beating over the past few days and stocks enjoyed their second best day EVER on Tuesday.  Because of those events, the initial reaction to the cut could have the opposite affect.  While today may be a descent day for interest rates, the next week or two does not look as promising. 

 

Anyone sitting on the fence for a refinance OR hoping for rates to improve before locking in on a purchase should consider locking their rate sooner rather than later.

Clay Jeffreys is a Mortgage Consultant with Hillside Lending, LLC and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.” Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing. For more information about available programs and interest rates, please visit www.hillsidelending.com.

 

Déjà Vu – again

October 8, 2008
Yes Neo, you have been in this blog before

Yes Neo, you have been in this blog before

The Federal Reserve issued an emergency 1/2 point rate cut to the Federal Funding Rate this morning. This brings the Federal Funding rate down to 1.5%, which is the lowest it has been since the months following 9/11. 

Today’s action by the Federal Reserve was part of a global effort coordinated with other countries who also lowered their rates in hopes of stimulating the market.  The European Central Bank (Euro) and the Bank of England (Pound) cut their rates by a half a point.  Switzerland, Canada, and Sweden also made cuts to their rates.

The coordinated effort is just another step in a series of actions by the Federal Reserve and the government to help stem the financial crisis that is now impacting the entire global market.  Steps thus far include the Federal Reserve slowly cutting the Federal Funding Rate (beginning 08/07), the Economic Stimulus package (05/08), the Housing Bill (08/08), and the recent Bailout plan.

The Federal Reserve and the government have worked tirelessly to assist the economy in hopes of preventing a long downturn (recession and/or depression).  You may not agree with all of the decisions (I don’t), and you may not even like some of them, but keep this in mind.  This is NOT the Hoover administration of the late 1920s that refused to assist after the stock market crash.  The turning point of getting out of the Great Depression didn’t begin until FDR’s New Deal was enacted in 1933.  Government involvement didn’t solve problems overnight, but it was the start of the recovery.

That said, now let’s change directions and discuss the impact of the recent moves in regards to how they will affect mortgage rates.  Will mortgage rates improve or suffer from these moves?

– Fed rate cuts help stocks, not bonds.  Stock prices go up, and bond prices go down.  As the value of bonds go down, mortgage rates go up.

– Mortage rates are negatively influenced by inflation, and cuts to the Federal Funding Rate spurs inflation.

– The Bailout Plan focuses on injecting liquidity back into the market for investing in stocks.  It’s design is to stimulate the economy and get it running again.  Good economic news is actually bad for interest rates.

This would lead one to believe that there will be a negative long term impact on mortgage rates, and will likely happen over the next few days and weeks.  A negative impact would be the typical reaction, but needless to say, nothing has been typical in this market. 

Clay Jeffreys is a Mortgage Consultant with Hillside Lending, LLC and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.” Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing. For more information about available programs and interest rates, please visit www.hillsidelending.com.

Déjà Vu – haven’t we been here before?

July 15, 2008

In the words of Neo, “Woah!”

It’s January 2008, and the Federal Reserve finds itself in the precarious position of being between a rock and a hard place. The Feds need to decide between helping to spur the economy through continued cuts to the Federal Funds Rate versus a potential increase in inflation due to those rate cuts.

Fast forward to July 15, 2008 where the Federal Reserve finds itself (once again) in an unenviable position.  The concerns over inflation have been met. The series of rate cuts designed to help stimulate the economy are now hampering it as the Dollar loses value, oil prices are at record levels, energy costs rise, and the cost of food is increasing as well. The year-over-year inflation report had its largest jump in a year-to-year comparison since 1981.  

Why is this happening?  See this previous post for more details, but for a quick summary:

— When the Feds lower rates, the value of the Dollar goes down. A decrease in the value of the Dollar means it takes more Dollars to buy the same amount goods.

— Oil is traded in Dollars and as the value of the Dollar decreases, oil prices go up. We are now seeing record oil prices and gas prices over $4 a gallon.

— A gas prices go up, food costs rise because it costs more money to get food to the local grocery store.

This doesn’t even take into consideration how oil prices are affecting the price of corn. To help reduce gas consumption, ethanol is now being used as an additive to gas. Corn is used to produce ethanol, and corn prices have increased from about $3.50 in 2007 to over $7 in 2008. This increases the cost of feed for cows and chickens, which increases the cost of dairy products.

What can the Feds do to combat inflation? Begin raising the federal funds rate. Easy, right? Well, not exactly.

While rates do need to be increased to combat inflation, increases to the federal funds rate will put more pressure on banks and the lending market. This, in turn, would put more pressure Fannie Mae and Freddie Mac, who are the linchpins for the lending world (more on Fannie and Freddie later this week).

So, what will the Federal Reserve do? Increase rates to fight inflation at the possible cost of putting more pressure on the lending market, or keep rates steady resulting in less pressure on banks but at the potential cost of more inflation.

Either way, the Feds could hurt the economy as they try to help it. Glad this is a decision I don’t have to make.

Clay Jeffreys is a Mortgage Consultant with Hillside Lending, LLC and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.”  Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing.  For more information about available programs and interest rates, please visit www.hillsidelending.com.

the final cut?

April 30, 2008

Like bad movie sequels, all things must come to an end. For inflation hawks, the end of the seemingly continuous rate cuts can’t come soon enough! Well, the end may indeed be here. Hinting this may be it for rate cuts, Bernanke and the Feds cut the Federal Funds rate by .25% this afternoon (lowering the rate to 2% and brings prime rate down to 5%). This is the seventh cut by the Feds since September.

The first “Pirates” movie was amazing! The sequel, unnecessary. The third one, ridiculous!

As much as I love “Captain Jack,” I hope this franchise is finished!

How will this affect rates? The previous six rate cuts caused the bond market to lose 78 or more basis points in the next few days following the cut. The drop in bond prices forced mortgage rates up. However, this time things could be different.

If this is indeed the last cut, it may actually strengthen the bond market, and the initial market reaction supports this theory. Since the rate cut announcement this afternoon, bonds rallied from a deficit to finish over 40 points ahead on the day while stocks lost over 100 points to finish in the red. This caused mortgage rates to improve over the course of the day.

Why the change for the bond market? The previous rate cuts also came with multiple hints of future rate cuts. Continued speculation of future cuts — the fire that stokes inflation – caused bonds to react negatively. Since the Feds statement today said this is it, bonds are reacting more positively knowing that Feds are done with cuts, which will help tame inflation. It will be interesting to see how this plays out the rest of the week, especially with the Feds favorite economic report for reading inflation being released tomorrow.

Clay Jeffreys is a Mortgage Consultant with Hillside Lending, LLC and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.” Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing. For more information about available programs and interest rates, please visit www.hillsidelending.com.

Bernanke strikes again

March 18, 2008

The Federal Reserve reduced the federal funding rate by 0.75% this afternoon. The last few rate cuts initially caused bonds and stocks to both post solid gains on the day of the cut. That trend stopped today. The Dow shot up 420 points — it’s fourth biggest gain in its history. Sadly for bonds, their value dropped almost 100 points causing interest rates to increase about 0.25% on the day.

Why the change in the trend? Eventually rate cuts produce inflation. Even with the tame inflation numbers from this month, inflation is becomming a much bigger story and may wind up dominating the mortgage backed security bond market in the coming months.

Rates could even get worse over the next coming days. Take a look at the chart below of the bond market the last time the fed rate was cut — Jan 30, 2008.

1-30-2008-rate-cut.jpg

The bond market continued to plummet for weeks after the cut before finally fighting back. This pushed mortgage rates up 0.75% of a point during the first few weeks of February.

What does this all mean for rates now? Well, if history is any indication, rates are more likely to get worse before they get better. Anyone waiting for a good day to lock in a rate for a purchase or a refinance — today is your day!

Clay Jeffreys is a Mortgage Consultant with Hillside Lending, LLC and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.” Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing. For more information about available programs and interest rates, please visit www.hillsidelending.com.

What is the Federal Funds Rate?

January 23, 2008

It seems stories on the economy and the Feds are in the news everyday. Because of that, it seems this blog and news sources often talk about the Federal Funds rate. But what does the federal funds rate do, and how does it impact mortgage rates? To answer those questions…

The federal funds rate has a direct impact on the rate at which banks borrow and lend money. The Fed rate determines prime rate, which follows along with the federal funds rate. For instance yesterday, the Fed rate dropped from 4.25% to 3.5%, and prime rate followed by dropping from 7.25% to 6.5%. Banks use prime rate to determine rates for 2nd mortgages, home equity lines of credit, credit cards and car loans.

While this is helpful for 2nd mortgages, 1st mortgages generally suffer. I know what you are thinking — but why? There are some reasons, and I will list them below. First remember mortgage rates are determined by the mortgage-backed securities bond market. When more money is invested into bonds, bond prices go up, and mortgage rates go down. However, when more money is put into stocks, less money goes into bonds… bond prices go down… mortgage rates go up… etc.

With that in mind, here are the ways in which cuts to the federal funds rate tend to hurt 1st mortgage rates:

– Federal funds rate cuts increase investing: If banks (and people) can borrow money at a cheaper rate, they are likely to increase their investments in the stock market. This means that more money is being put into stocks, and less money goes into bonds (not to mention money being taken out of bonds to invest in stocks). This action causes bond prices to go down and mortgage rates go up.

Federal funds rate cuts cause inflation. Again, if banks (and people) can borrow money at a cheaper rate, this leads to an increase in spending. With an increase in spending, the demand for products and services increases, which drives up the prices of those products are services – otherwise known as supply and demand. The increase in price is inflation, and bonds hate inflation because it hurts the value of the U.S. Dollar. If it costs more money to buy the same goods or services today than it did yesterday, it means the Dollar has lost some of its value. Again, bond prices go down and mortgage rates up.

Federal funds rate cuts decreases the value of the U.S. Dollar: Inflation hurts the value of the Dollar, which also makes foreign goods more expensive to buy. This may be all well and good for individuals concerned about our trade deficit, but it still costs more money for companies to buy the same products that they turn around and sell to us in stores. The price increase is passed on to us, the consumer.

Right now the bond market is doing rather well. This is due primarily to the slowing down of our economy, which has led to the Feds making several cuts to the federal funds rate. At some point, these cuts will catch up to the bond market and rates will go up. This is why I advised anyone looking to refinance or purchase a home to consider locking in sooner rather than later. Take advantage of the gains in the market that have put us near all-time record lows for fixed rate mortgages before the market turns around.

Clay Jeffreys is a Mortgage Consultant with Hillside Lending, LLC and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.” Hillside Lending seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing. For more information about available programs and interest rates, please visit www.hillsidelending.com.