Can someone explain what .5% rate cut means to the mortgage rates to first time homebuyers?
In: Economics
Are you still in a fixed rate period? Yes? Then it means nothing to you at the moment. Ignore it.
Are you about to end your fixed rate period, or are you already on a variable rate? Then your mortgage will get slightly cheaper than it otherwise would have been. Very slightly.
Do you have any control or choice over this whatsoever? No. The rate is the rate. It could go up tomorrow. You might already have a much higher rate on your mortgage when you leave the fixed rate period, etc. Whatever the rate is – you’re gonna have to pay it.
The only thing you can do is “fix” your rate for X years at some point. And then if the rate goes down? Tough luck. If the rate goes up? You’re doing okay. Either way, neither will affect you until the fixed rate ends.
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