With all the news stories the past couple of months about the rate reductions, you would think buying a home or refinancing in the current financial market should be cheaper than buying a burger for dinner.  So is it??????  NOOOOOOOO, try again!

The plain hard fact is that with all the rate cuts by The Fed,  the consumer doesn’t seem to be seeing the benefit of the cuts.  Why is that?  Well, really there are a lot of complicated reasons but the quick easy answer is this.  The investors who purchase the loans on Wall Street are looking for a higher return on their investment now that the investment itself seems more risky.  Therefore, the lenders that make the loans are charging a higher rate in order to sell those loans on Wall Street.

The other piece of news is that The Fed has signaled that as soon as they feel that inflation is becoming a danger, they will reverse those cuts as quickly as they gave them.  The wild card is what the rates will do.  Hard to tell in this market but it makes sense that they would have to go up too.  I guess only time will tell……Continue to feel that you can contact me with any questions or problems that you might have!!