The Fed has cut short term rates by 1/2 percent. This moves the prime rate from 8.25% to 7.75%. How will this effect mortgages? Immediate results for homeowners who have second mortages where the rate adjusts with the prime rate. Also home equity lines of credit saw their rates drop by 1/2%. However, at the same time it is becoming increasingly harder for people with less than perfect credit to get a loan especially if they need to borrow more than 80% of the purchase price. If you are contemplating buying a home in the near future, it is imperative that you check your credit scores and do whatever you can to improve them.
Markets Soar After Fed Cuts Key Rate by a Half Point - New York Times