Lowest Lake Mary Mortgage Refinance and Purchase Rates in over 2 years!? If you move quick…

Well Good News for Lake Mary mortgage rates! The Federal Open Market Committee [maybe we will just call them the FED] voted to cut the Fed Funds Rate by at least three-quarters percent Tuesday. The benchmark rate now rests in a range of 0.000-0.250%… and no, that doesn’t mean your mortgage will be at 0%. [Typically you will add 3% to that number to attain the PRIME Rate - which is what many Home Equity Lines, car loans, credit cards, and equipment loan are based upon.] In its press release, the FED ID’d 3 key sectors of the economy in which activity has weakened since October. They noted:

• The U.S. job market is deteriorating – uh, duh!
• Consumer spending levels are falling – really?
• Business investment is contracting nationwide – try WORLDWIDE!

[Commentary added by yours truly... forgive me, I digress.] The Fed intends its rate cut to provide stimulate to each of these areas and the Lake Mary Real Estate market is likely to be a benefactor as well.

In addition, the voting members of the FOMC singled out inflation as a diminishing threat to the economy. This is an important admission because it’s well-known that cuts to the Fed Funds Rate can spark inflation. Rapidly falling oil prices and commodity costs, therefore, likely paved the way for today’s historic cut.

In its announcement to markets, the Fed gave The People what they wanted — a reassurance that the policy-making group would “employ all available tools” to help turnaround the economy. Lowering the Fed Funds Rate to an all-time low is one such step; its plan to purchase mortgage-backed debt in the open market is another. This is huge.

After the announcement, stock markets rallied and mortgage bonds did, too. Rates ended the day slightly lower.

Source Parsing the Fed Statement

Chris Brown All Around Good Guy Trinity Mortgage 153 Parliament Loop#1001Lake Mary, Florida, 32746	Work: 407 377 0500 x 210 Chris@OrlMtgPro.com www.MortgageChiliBlog.com
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