Can someone explain what .5% rate cut means to the mortgage rates to first time homebuyers?

Question

Can someone explain what .5% rate cut means to the mortgage rates to first time homebuyers?

In: Economics

Answer 1

The 50 basis points announced today aren’t *directly* related to mortgages. Mortgages are more closely tied to the 10-year Treasury yield. Eventually, it trickles down, but it’s not usually immediate and does not necessarily have the same cut amount.