Fed Cuts Rates Another .25% To 4.5%

Although it's Halloween today, this is no trick. In fact, it's more of a treat for consumers who like cheap money. After cutting the short term interest rate .50% in September, the Fed went ahead and posted another interest rate cut of 0.25%. The federal funds rate is an overnight lending rate for banks which impacts among other things what consumers pay on credit card debt, home equity lines of credit , and auto loans.

This is great news for consumers, but it does not necessarily affect those who are shopping for a home loan. Mortgage rates are generally based on the 10-year U.S. Treasury bond yield, which actually rose after the .50% percent cut in September. This was a case when maybe a .50% cut was a little too much when viewed by mortgage investors who were concerned with the threat of inflation with such a drastic cut. Mortgage investors lend money for fixed rate mortgages often times up to 30 years. So if inflation spirals out of control, it can minimize these investors returns. 

I by no means consider myself an economist, but I wouldn't be surprised to see rates trickle down a little bit over the next month or so due to the mild nature of the rate cut.

For those looking to purchase a home or refinance an existing equity, you're in luck as interest rates are already outstanding. Any decrease in rate due to the fed cut would just be icing on the cake. Lets take a quick look at today's interest rates in the greater Phoenix - Scottsdale metropolitan area. Please consult with your local mortgage broker for APR's and other specific loan details. 

Current Phoenix Mortgage Rates

If you're considering purchasing a home in Scottsdale, or the greater Phoenix metropolitan area, now is the time to take advantage ot today's great interest rates. Currently we have approximately 57,000 homes on the market which really puts you in the drivers seat when negotiating a deal on your new home. We can even arrange to have the sellers pay for your closing costs making buying a new home easy on the pocket book. Feel free to call me direct at
(480) 209-6277, or visit our Scottsdale Real Estate website to get started searching for your new home today.

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