Fed Cuts Rates by .75% In Emergency Move; Mortgage Rates Drop

Today's market opened up following major stock market losses and an emergency move by the Federal Reserve, lowering the Fed Funds rate by .75%. Retail mortgage rates should improve by about .375 to the points today as a result. Yesterday, while US markets were closed in observance of Martin Luther King Day, international markets posted heavy losses over concerns about the US economy. The Fed reacted this morning in an emergency move by reducing short term interest rates by .75% in an effort to reduce the damage foreseen. Stock markets are still down over 200 points at the time of this writing, and bonds are up. If the sell off in the stock market continues, this will bode well for mortgages. However, if today's sell-off is recovered over the next few days, rates will also head up.

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30 Year Fixed   6.05
15 Year Fixed   5.72
5/1 Adjustable   5.78

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