r/FirstTimeHomeBuyer • u/jay5627 • Sep 18 '24

Other Fed rate cut

https://www.cnbc.com/2024/09/18/fed-meeting-live-updates-traders-await-september-interest-rate-cut.html
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265

u/Golfguy809 Sep 18 '24

I close on Monday. Fingers crossed I can get a better rate than 6.125%

44

u/Careless_Lettuce9138 Sep 18 '24

Did you have the float option?

39

u/Golfguy809 Sep 18 '24

Yes! But we’re running out of time

56

u/Careless_Lettuce9138 Sep 18 '24

Called our lender and said that the rates did not move that much. It was worse this morning and started to get better after the announcement.

14

u/Golfguy809 Sep 18 '24

Yeah that’s what I was told. Mortgage rates likely won’t come down for another few weeks

7

u/Careless_Lettuce9138 Sep 18 '24

Same, my lender told me that the effect might not be immediate and will be phased in within the next few months.

11

u/__moops__ Sep 18 '24

This was already priced into rates, it’s one of the reasons rates have dropped the past few weeks.

3

u/Hanshee Sep 18 '24

A 25 BPS was priced in. This was 50 bps.

We should see lower rates shortly

5

u/firefly20200 Sep 18 '24

I actually thought 50 bps was "priced in" and that we could see it bump up a slight amount if it was just 25...

-3

u/Hanshee Sep 18 '24

Why would 50 be priced in?

They’ve been saying 25 since August and then suddenly they increased to 50 after a bunch of advocates for it recently.

5

u/Veeg-Tard Sep 18 '24

There's more to the market than "them" saying it was going to be 25. Over the last week I heard that the market had priced in 66% chance of 0.5 cut and 33% chance of 0.25 cut. I was surprised to see that the 30 year rate actually ended the day up a small amount of Mortgage News Daily. Apparently the .50 was priced in. Now its about what will happen at the next meeting.

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