Fed Cuts Rates .25%

The Federal Reserve announced today it would cut key short term interest rates by a quarter of a percentage point. This was the expected result, but it was the the Fed's statement which caused the market to improve. Rates will be better by about .375 to price by the end of the day, and many lenders will have made mid-day pricing adjustments. If not, look for improvement Thursday morning. The statement by the Fed gave the impression that rate cuts may be over for now and that the the feeling internally is more optimistic about the economy than it has been in quite a while, it seems to be backing off its previous concerns of inflationary pressure. It is directly as a result of this that rates have improved. In other news today the 1Q GDP came in stronger than expected, but not enough to affect rates today. The 1q Employment Cost Index showed a slightly weaker than expected reading.

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National Rates

Loan Type Today
30 Year Fixed   6.05
15 Year Fixed   5.73
5/1 Adjustable   5.78

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