Interest Rates Continue to Move Down

Last week, the Federal Reserve cut its benchmark Federal Funds rate, the rate at which it lends funds to member banks to a target rate of zero to 1/2%. This resulted in the prime rate to be cut by most banks to 3.25%. Although mortgage rates are only indirectly affected by movement in short term rates, the reduction in the Federal Funds rate also reinforced the reduction in mortgage rates due to the previously announced Federal program to expand its purchases of securities issued by Fannie Mae and Freddie Mac.

Conforming loan rates are now down to a level not seen since the early 1960’s

Interest rates provided by Michael Cordova with Milestone Mortgage

For more information on buying and selling real estate on the Palos Verdes Peninsula, visit my website at https://maureenmegowan.com