Emergency Rate Cut from the Federal Reserve

Will mortgage rates go lower? Is now the time to buy or refi?

On Tuesday, multiple news outlets including CNN reported that the Federal Reserve slashed interest rates by half a percentage point. It’s the first unscheduled, emergency rate cut since 2008. It also marks the biggest one-time cut since then. 

Yahoo! Finance quotes experts from Mortgage News Daily and Zillow who say today’s mortgage rates may be as good as they’re going to get. At no time in modern economic history have rates been able to move significantly lower than they are right now, and some lenders prefer to quote more conservative rates until volatility dies down.

HousingWire also reports that because borrowing costs for fixed-rate mortgages are set by bond investors, and if the Fed decision results in money managers going back into the stock markets, it may stem a slide in fixed interest rates seen last week as competition for bonds heated up.

So, rates are currently at historic lows and they may not go lower, meaning they could stay put for a while or even go up when markets rebound. All signs point to now being a great time to lock in a rate on a new home purchase or a refinance of your existing loan. But everyone’s situation is different, so contact your trusted CrossCountry Mortgage loan officer today to see if a rate lock is right for you. We’re here to help!