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Rhonda Said:

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

We Answered:

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.

Lynn Said:

How would the mortgage interest rate be effected when the FED cut on key interest rate?

We Answered:

When the Fed cuts rates it has no direct effect on mortgage rates. The Fed funds rates is a short term interest rate. The Fed cutting rates will effect Lines or Credit rates and credit cards. If you are interested in where mortgage rates are going look at the 10-year Bond. Fed has been cutting rates and mortgage rates have been moving up ALOT over the last 6 weeks.

Marcia Said:

When will the Fed's rate cut be reflected in mortgage interest rates that one can obtain?

We Answered:

Conventional mortgage rates are long term debt instruments and the Fed Funds rate is for short term debt instruments - therefore they don't necessarily go hand in hand. Mortgage rates are based more on the 10 year treasury yield and the perceived rates of inflation. 10 year was up a touch today.

If you are looking at things like Home Equity Lines of Credit, car loans, credit card rates - those usually have in the contracts a reset at a certain time of the month and will likely be reflected in the next full billing cycle.

Renee Said:

Where do you see the mortgage interest rate going in next 2 months?

We Answered:

well, Ben Bernake will keep interest rate low by the end of December.
If you were buying car or house at this time. Right now is the time to lock in rate. Good luck

Jay Said:

Who can give me a lower mortgage interest rate and monthly payments in Austin?

We Answered:

how much money are you putting down and what terms do you want, 30 year fixed, 15 year fixed, FHA/VA, conventional or USDA?