Rate Update October 8, 2008

The Fed announced this morning that they, in conjunction with 5 other central banks, were cutting short-term interest rates by .50%.  This takes the Federal Funds rate down to 1.50%.  The prime index is now expected to dip to 4.50%.

Ordinarily mortgage rates don’t always benefit from a fed rate cut.  However, watch today’s you tube video to understand why this might be different.

Current outlook: floating