With the fed cutting the interest rate by 2 points is refinancing a house loan better today than yesterday?

Chasity
The rate was only cut by 1/4 point. It now currently stands at 2%. This is the rate at which banks lend to each other. It is one, of many, factors that influence mortgage rates. Between yesterday and today, rates haven't fluctuated a whole lot.

Ida
They only cut by 1/4 point.It may or may not affect rates. Rates are generally based on the 10 year Treasury Bill. If the yield goes up, rates go down, and vice versa.Tomorrow will probably be about the same as today, it will take a week or so for the rate cut to really filter into mortgage rates.

Alejandra
Fed cuts in rates do not necessarily affect mortgage rates, nor is there any direct correlation between the two. It is the biggest myth in the world, and I wish people did not think this was the case. See the article: http://www.schwab.com/public/schwab/rese…The biggest indicator for mortgage rates is based on the bond market as was already explained, but inflation, the value of the dollar, (un)employment and other external factors - such as liquidity (demand) in the secondary market will have a greater impact on rates than the Fed cuts.

Deandra
The fed rate has precious little to do with mortgage rates. As stated elsewhere, these rates reflect activity on longer term Treasuries, etc.Mortgage rates don't change with fed reductions.

Paige
no ==It does not have any effect on the BONDS market it may have a trickle down effect in 2-3 months. The feds fund rate is between the fed. reserve and banks for OVERNIGHT transactions