USDA Home Loans Blog

It's only natural to assume with the Federal Reserve dropping the interest rate, for people to think it will affect their adjustable rate mortgage.  Unfortunately, that is not the case!  When the Feds rate drops, it affects people who have a home equity line of credit on their home.  Home Equity lines of credit are based on the Prime Rate, and adjust accordingly.  Other financing affected by the decrease in the Fed rate would be credit cards, and auto loans.

The thirty year mortgage rates are affected by the treasuries.  One that I pay particular attention to is the 10 year bond.  When the bonds move, the rates move.  So don't be waiting for the Feds to continue to bring the rate down before purchasing or refinancing your home.  The thirty year interest rates are well below prime, keeping around 6.375 & 6.5 during the month of September.

This is still a great time to buy or refinance and get a great 30 year fixed interest rate!