I get this question every time the feds lower rates and the answer is always the same, NO. This rate will affect the prime lending rate for millions of borrowers, which will drop by a corresponding amount. The prime rate applies to certain credit cards, home equity lines of credit and other loans. The prime rate was at 5% and after this mornings move by Fed Chairman Ben Bernanke, the new prime rate will be 4.5%.
A better indicator of what Minnesota mortgage will do is the 10 year treasury note. While not perfect indicator, when the index value for the 10 year treasury goes down, there is a chance that the 30 year fixed Minnesota mortgage rate will also go down. How much the index changes in a day or week influences how much of a corresponding change may occur in the Minnesota mortgage rate. Do not imagine that this indicator is a guarantee of rate movement as the changes to the 10 year treasury have been so wild and fast lately that many times the mortgage rates have remained unchanged for a day or two while the market tries to figure out if the move is a trend or a blip.
If you have found that the rates make home buying an option for you and you need to find a real estate agent, visit Agentopolis. For more information about how you can get the lowest MInnesota Mortgage rate on a 30 year fixed mortgage, call Ken Horst @ 612-251-8237.
