Is it true that the Feds just dropped the interest rates to 3 percent?

Just need to know if what I read is true, because I already made a bid on a house, and I want to know what I can do to take advantage of this. ThanksIs it true that the Feds just dropped the interest rates to 3 percent?
Yes and no. You aren't about to get a 30-year fixed mortgage at 3%; I'll explain.





First, the Fed doesn't determine interest rates that consumers pay on their mortgage-that is determined by the market itself, especially the bond market. If the government mandated prices, we'd be in Venezuela or some other socialist state with a centrally-planned economy. We are in a free market (thankfully).





If the Fed ';lowers'; the rate, it is the rate for the banks to borrow money from the Federal Reserve, for instance, or another institutional index which does not have a direct relationship with consumer rates. It is the cost of the money that the banks incur, not you. If the banks can borrow money at 3% instead of 3.5%, then they'll have a better profit margin and the money supply will be more liquid.





Borrower rates are also affected by the % of the downpayment, credit score, level of asset and income documentation, type of loan (FHA, conventional, adjustable, etc), and type of property (owner occupant, investment, etc).





So, your rate is going to be higher than 3%, and that will be best determined by a knowledgable loan officer who knows all the details of your particular transaction. Get a good faith estimate for those closing costs as well! Good luck.Is it true that the Feds just dropped the interest rates to 3 percent?
The rate you are talking about is NOT the rate that consumers (you and I) pay.





This is just the rate that banks borrow money for. Then they add points (interest rate) to that rate and charge their customers.





The fed is not going to drop rates much more as inflation is spiraling out of control and our dollar is becoming worthless.





If the house is a good deal and you can afford it do not wait around for another rate cut. Banks aren't cutting their rates to us anyway.
You can't take advantage of this. None of us can. Banks are extremely cautious in their lending policies right now (about time!) and rates for us mere mortals are not coming down anytime soon.
Here's a link to the current prime rates:





http://www.bankrate.com/brm/ratewatch/le鈥?/a>
Won't help you.........





Helps me........I have a home equity loan out a 3.99%
NO!!!!!!!!!! this has nothing to do with mortgage rates.