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

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

In: Economics

14 Answers

Anonymous 0 Comments

It’s cheaper for banks to borrow money from each other. Therefore, it’s easier for them to charge lower mortgage rates to homebuyers.

It’s not 1-to-1 though. A 0.5% rate cut is a change to the Fed’s *target*. Mortgage rates are also impacted by good ole’ supply and demand, and they’ve already been falling for a while yet.

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