Buying a Kapolei Home? Watch Out for Rising Mortgage Loan Rates

Fed rate cut doesn't help traditional mortgage rates

Anticipation of the Fed rate cut a couple of weeks ago did more to help mortgage loan rates than the actual Fed rate cut. Now, Kapolei mortgage rates are on the rise as T-notes respond to economic fears, nulling the effects of the Fed rate cut on long-term mortgage rates. Option ARMs and other mortgage loan rates that rely on short-term intro periods are seeing lower rates, but choosing an option Arm may not be the best way. Inman News reports on issues with the Fed rate cut on mortgage loan rates:

At this moment the economy receives some
dinky benefit from the cut (Construction money is 0.5 percent cheaper
– wanna build a house? Short-term rates are down — how about a nice
new neg-am pre-pay-penalty ARM? No?), but the crunch is still in place,
especially in Mortgageland.

Fore more on Kapolei mortgage rates and real esttae, contact John Riggins.


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