Fed Rate?

[Stryke]

So the Fed cut their discount rate last week.
Will this affect mortgage rates for people trying to get a mortgage?

Any predictions on wether the fed will make any further cuts?

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[The White Coat Investor]

So the Fed cut their discount rate last week.
Will this affect mortgage rates for people trying to get a mortgage?

Any predictions on wether the fed will make any further cuts?

Yes.

Yes. Interest rates will fluctuate.

Predicting interest rates is extremely difficult to do, particularly more than 3 months into the future.

 

[MDInvestor]

So the Fed cut their discount rate last week.
Will this affect mortgage rates for people trying to get a mortgage?

Any predictions on wether the fed will make any further cuts?

Discount rate is not the same thing as mortgage rates for people. There are various rates..

Some deal with banks borrowing from banks.. (Overnight Inter-loan Rate)
Some deal with banks borrowing from Fed (Fed Discount Window Rate)
Some deal with banks lending to people.. (Fed Rate)

The mortgage rate to people was NOT changed... and hopefully it will stay put or rise.. and finally put the daggar in the chest of speculators who pumped up the real estate to ridiculous prices.

My hometown in DC had housing ranging from $525k-$670k last year.. There was no rise in income or anything that indicated housing should be that expensive.. just CHEAP money made available by uncontrolled low interest rates.. Luckily, 3 houses in our neighboorhood have been forced to sell to avoid foreclosure at 350K-400k

 

[etf]

Discount rate is not the same thing as mortgage rates for people. There are various rates..

Some deal with banks borrowing from banks.. (Overnight Inter-loan Rate)
Some deal with banks borrowing from Fed (Fed Discount Window Rate)
Some deal with banks lending to people.. (Fed Rate)

The mortgage rate to people was NOT changed... and hopefully it will stay put or rise.. and finally put the daggar in the chest of speculators who pumped up the real estate to ridiculous prices.

My hometown in DC had housing ranging from $525k-$670k last year.. There was no rise in income or anything that indicated housing should be that expensive.. just CHEAP money made available by uncontrolled low interest rates.. Luckily, 3 houses in our neighboorhood have been forced to sell to avoid foreclosure at 350K-400k

actually, the federal funds rate (fed rate) is what banks charge each other, not to people. that would be the prime rate.