Fed Rate Cut Ahead

[gavinmccallister]

The talk on the street is the Fed will now cut rates in Sept. by a quarter to a half percent.

[momof1in150]

Too bad they won't do it before we lock into rates on our mortgage next Monday.

Mortgage rates actually went down this week: Link

[Ima saver]

I guess that means saving rates will go down too.

[txex86]

For some time now, Treasuries have been yielding lower than the current Feds fund rate of 5.25% and most banks set their CD rates based on T-bills. If the Fed does cut the core rate, it would no doubt cause a precipitous move downward. We may be lucky to see 5% on 1 year CD's if there is a Fed cut.

[banditfist]

Too bad they won't do it before we lock into rates on our mortgage next Monday.

Mortgage rates are tied to the 10 year treasury than the short-term rate.