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Article: Borrowers Predicting Mortgage Rates Based on the Fed's Rate Adjustments May be in for Unpleasant Surprises.
- Article from:
- PR Newswire
- Article date:
- November 8, 2007
CopyrightCOPYRIGHT 2007 PR Newswire Association LLC. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Misconceptions about mortgage rates' driving forces can cost borrowers huge sums
HOLMDEL, N.J., Nov. 8 /PRNewswire/ -- Each time the Federal Reserve (the Fed) cuts interest rates, borrowers converge upon their mortgage representatives expecting lower interest rates. Unfortunately, they find that mortgage rates often rise after the Fed cuts rates, and those who have held off on refinancing or locking rates thinking a Fed rate cut will reduce mortgage rates, are actually faced with higher rates than before the Fed's rate reduction.
"Consumers who are looking to get the best mortgage rates need to understand that the Federal Reserve can only control the ...