So you have heard about "the Fed" "cutting rates..." but what does that mean for you as a home buyer? Here's a couple quick thoughts from Brad Arendt of CTX Mortgage on the impact of recent decisions.
*The Fed surprised everyone with a 1/2 percent rate cut - stock market rally!
*Mortgage rates actually move up following the news. Contrary to the TV news reports, mortgage rates actually rise when the Fed lowers their rate. Why? Mortgage rates hate inflation, and a Fed cut can lead to inflation.
*FHA has increased their loan limits in the Triangle....now up to $224,200 for a single family dwelling. Great news! This will help many buyers with credit challenges find a home AND a loan!