We need a simple explanation to remind simple people (like me!) that when the Federal Reserve Board lowers the Fed Funds rate, there is no direct impact on mortgage rates. How's this: Banks borrow money from the Federal Reserve at the Fed Funds rate for a period of about 24 hours. We borrow mortgage money from the bank to buy our houses for a period of 30 years. Should these interest rates be linked in some simple and explicable fashion? 1 day: 30 years. 1 day: 30 years. Maybe not.
Want to know exactly what the Fed Funds rate is and what it's used for? Try this link: http://www.bankrate.com/brm/ratewatch/fedFundsRate.asp
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Some times even a pro in real estate would forget some simple tips that would help him in gaining more. Reading articles and a good study of all the updates is what makes them perfect in their business.
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