Mortgage Blog

Lots of people asked whether we have lower rates again.

First, the mortgage rate is different from the Fed rate. Fed rate changes only a few times a year, the mortgage rate changes every day.

Second, this year, the Fed Rate cuts are preventive strategy. It plans to prevent the economy enter into the recession. If the Fed strategy works, then the interest rate will go higher, not go lower.

Third, Lender always have the pipeline management issues. Whenever they have enough loans in the pipeline, they would increase the interest rate(not lower) so that they can complete the loans.

Fourth, lenders/banks plan to have a little bit higher rate so that their profit margin would be better, so that their earnings can improve a little bit.