Interest rates slashed to 0-0.25%

Home Forums Purchase Program Interest rates slashed to 0-0.25%

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  • #66282
    caycolon
    Member

    As of 30 minutes ago, the federal government slashed interest rates from 0% to 0.25% How does that impact NACA’s rates??

    #66283
    MzDeeATL
    Participant

    I was just coming to ask this very question as I am closing on this Thursday.

    #66284
    djcwill09
    Member

    From what I read online, it doesn’t effect the mortgage rates if you’re buying a home. MzDeeATL, I hope it goes through successfully. Another group I’m in, someone posted you can’t close real estate transactions during a State of Emergency. We’re supposed to close on the 20th of this month, but I feel as if it’ll be delayed because we still have some steps to do (ie. final walkthrough, inspection, not sure if the appraisal is scheduled or was done, etc).

    #66286
    Nelsont
    Member

    I don’t know how it will affect the current rate. But if you are under contract your rate will be locked unless:

    You are in credit access for 90 days

    You void your contract and start over

    #66287
    Peapod0609
    Member

    Typically when the feds cut the rates, the mortgage rate will also drop. However, it’s not a guarantee as the mortgage rates aren’t 100% tied to what the feds do. They are loosely linked, but it is not a guarantee that it will effect mortgage rates or NACA’s rate.

    #66330
    TTrumble
    Member

    Hello all,

    As I have noted several times here on the Forum, the Fed rate has virtually no effect on mortgage rates. The Fed funds rate is much more applicable to shorter-term lending such as credit cards, and shorter term installment loans such as car loans. Since mortgages are still typically backed by Fannie Mae, Freddie Mac or private investors, the Fed rate has no real bearing.

    Mortgage rates will tend to follow general market trends, but the Fed rates have no direct bearing on mortgage rates.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

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