For the second time in two months, the Federal Reserve cut Interest Rates. The reason behind this cut is to stave off any slag in the economy from the China trade war and the global slowdown. The Fed also said they won’t be afraid to do one more cut before the end of the year to sustain expansion.
What does this mean for Mortgage Rates? As of right now, we have not seen the effect of this cut in the Mortgage Industry but typically we see a domino effect starting with the Reserve Rates then pushing down the credit card, home equity lines, adjustable-rate mortgages and auto loans. So hold on to your hats. We could be seeing some extremely low rates coming to us within the next few months.