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HubbaBubba
Oklahoma Fan
Denton County, TX
Member since Oct 2010
28281 posts

Fed expected to drop rates on Wednesday. Will it affect mortgage rates?
Saw that there was about a quarter point rise in rates this morning. Will the Fed rate decrease have any expected corresponding decrease in rates? I know they aren't necessarily related, but there's a huge uptick in refi right now and is that impacting the rate more than the Fed?


UpstairsComputer
LSU Fan
Prairieville
Member since Jan 2017
633 posts

re: Fed expected to drop rates on Wednesday. Will it affect mortgage rates?
Yes and no. Purely on a technical basis, the 30 year rate dropped significantly after the rate cut in July. There was inevitably going to be a bounce.

US30YR Rate

The million dollar question is why does the bond market believe the Fed will be cutting the short term rate 4 more times in the next 8 months?

Rate Cut Probabilities

Hope this helps.


HubbaBubba
Oklahoma Fan
Denton County, TX
Member since Oct 2010
28281 posts

re: Fed expected to drop rates on Wednesday. Will it affect mortgage rates?
Maybe. The mortgage lender, Lending.com, includes a rate guarantee of best current rate IF the basis points drop by 125 points or greater. Looks like I should lock in (3.5) and see where it falls to at closing.


UpstairsComputer
LSU Fan
Prairieville
Member since Jan 2017
633 posts

re: Fed expected to drop rates on Wednesday. Will it affect mortgage rates?
That actually sounds pretty good. What's the timeframe on that offer? Is it just during the closing period (like 30-45 days) or for something like a 12 month period?

Also, just to prove I could beat the hell out of that chart, check this out... US30Y


HubbaBubba
Oklahoma Fan
Denton County, TX
Member since Oct 2010
28281 posts

re: Fed expected to drop rates on Wednesday. Will it affect mortgage rates?
Not sure of the lock date. 30 is pretty standard, but 45 might be good, too. I've been working, so the documents are sitting in my inbox to digitally sign in a little bit.


ThatsWhatSheSaid69
Member since Aug 2012
20 posts

re: Fed expected to drop rates on Wednesday. Will it affect mortgage rates?
I just locked a 30 year at 3.625% for 45 days. Our house should be finish in about 3-4 weeks. The 15 year rate was 3.125%


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kywildcatfanone
Kentucky Fan
Wildcat Country!
Member since Oct 2012
62755 posts

re: Fed expected to drop rates on Wednesday. Will it affect mortgage rates?
quote:

The 15 year rate was 3.125%


I'm hoping for this come May next year. Or less.


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LSUSUPERSTAR
USA Fan
TX
Member since Jan 2005
13297 posts

re: Fed expected to drop rates on Wednesday. Will it affect mortgage rates?
I got 4% on my loan that closed in July. Is there a rate that I should try to refinance? Will anyone refinance that new of a loan?


3morereps
Illinois Fan
The Gym
Member since Jun 2015
5390 posts

re: Fed expected to drop rates on Wednesday. Will it affect mortgage rates?
Any will refinance that loan. They’ll charge you a couple grand though. You need to calculate what your payback is or how long until your savings exceed your new closing costs. If you’ll be in the home longer than that, go ahead and refi


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buckeye_vol
Ohio State Fan
Member since Jul 2014
31862 posts

re: Fed expected to drop rates on Wednesday. Will it affect mortgage rates?
quote:

the 30 year rate dropped significantly after the rate cut in July.
I’m pretty sure that fixed rate mortgages (and a whole bunch of other loans and lines of credit) follow the 10-year treasury, although both have a high correlation with the 30-year rate anyways.
This post was edited on 9/9 at 11:38 pm


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lsu13lsu
Member since Jan 2008
6864 posts

re: Fed expected to drop rates on Wednesday. Will it affect mortgage rates?
quote:

I got 4% on my loan that closed in July. Is there a rate that I should try to refinance? Will anyone refinance that new of a loan?


I have always heard the Rule of Thumb is 1% drop in rate and gonna be in house another five years. No clue if that is true.


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