30 Drop
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How will a 25bp drop in the prime help the rate on a 30 yr mortgage?
The fed is poised to drop prime today by 25bp and possibly the discount rate as well. I am curious if anyone knows how it will affect the interest rates on conventional 30 mortgages. Thanks,
Well, in simple terms, newly offered 30-year fixed rate mortgages should be at lower interest rates than what they were before the (supposed) rate drop. When interest rates fall, money is easier to borrow all around, so all loans see a fall in interest rates.
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