Florida Mortgage : Learning Center

At 2:15 PM this afternoon we will learn of Big Ben’s interest rate cut.  Keep in mind this hopeful rate cut directly affects the interest rate that banks trade on overnight delivery of loans.  What we are anticipating is how this reduction in banking interest rates moves fixed Florida mortgage interest rates.

Expectations are the Feds will lower the Fed Funds Rate by .50%.  In theory, if banks are lending to each other at lower rates then they will pass at least part of that reduction on to the consumer mortgage market.  If this Fed Funds Rate is not lowered or lowered by only .25%; then we may see a slight increase in available consumer fixed rates.

I believe the big focus on big Ben is not only the interest rate drop but the language regarding their outlook on the economy in the near future.  If they are positioned for additional rate drops then banks and mortgage lenders should ease and Florida interest rates may improve.  We will have to wait and see. 

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