Fed Emergency Rate Cut and Sedona Real Estate

Fed rate cut may help Sedona ARMs


While
long-term Sedona mortgage rates will not be impacted in a major way be yesterday’s emergency Fed rate cut, Sedona ARMs probably will be, along with home equity lines of credit. Inman News reports on the effects for the Fed emergency rate cut on some types of loans:

For those with adjustable-rate mortgages
(ARMs) indexed to the prime rate or home-equity lines of credit (HELOC)
loans, "this shows up right away in terms of lower interest rates," as
banks follow suit and lower the prime rate to 6.5 percent. For ARM
borrowers facing interest-rate resets, Nothaft said, that translates
into a smaller increase in payments, and "maybe even a decline."

Not only that, but home mortgage refinancing is going up as well, since lower mortgage rates are making it possible for some Sedona homeowners to refinance out of their ARMs.

For more on Sedona mortgage rates and real estate news, contact Claudia Ault by email or by phone: 928-203-1681.


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