The Federal Open Market Committee voted to cut the Fed Funds Rate by one-half percent today. The benchmark interest rate now stands at 1.000 percent. Now, many people assume that because the Fed Funds Rate fells, mortgage rates fell, too. They didn't. This is a false association; a myth perpetuated by the media. The Federal Reserve has no more control over mortgage rates than it does over stock prices.
The Federal Open Market Committee lowered the Fed Funds Rate to 2.250 percent Tuesday while leaving the door open for future rate cuts. Stock markets cheered the Fed's move; the Dow Jones Industrial Average rallied 400 points in th... Read Post
The Federal Open Market Committee voted to cut the Fed Funds Rate by one-half percent today. The benchmark rate now stands at 1.000 percent. In its press release, the Fed wasted no time addressing the key issue at-hand, stating that... Read Post
The Federal Open Market Committee cut the Fed Funds Rate by 0.250 percent today. The Fed Funds Rate is now 2.000% after the FOMC's seventh cut in eight months. Normally, a cut in the Fed Funds Rate pushes mortgage rates... Read Post