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

Prime rates will drop by about .5% though it should be noted that financial institutions do not have to drop their rates. It is a recommendation not a requirement. Still FIs would be stupid to not drop their rates because it instantly makes them non competitive. You should start to see rates go down anytime between now and a couple weeks from now. The FI I work for is dropping them on the 1st.