Ryan’s Mortgage Blog

Halloween already? I feel like summer just got here. That means it’s almost time for holiday shopping, and thanks to the feds rate cuts, those of us who use credit may just splurge a little extra this season. I’ll take a 65” flat screen for those looking to get me something.

The recent rate cuts will probably affect you one way or the other. For those with a HELOC (Home Equity Line of Credit), most will see their rates drop since they are tied directly to the rate that is set by the Federal Reserve.

Credit card rates tend to lower as well, but not immediately like HELOCs. The cuts could also help those selling a home. While mortgage rates usually go in the same direction as the fed rate, we learned recently that doesn’t always happen. BUT it may increase the confidence of buyers and that is very important right now. The fed is trying to make money available and boost the economy and housing market. I am not sure everything they are doing is correct, but I do know they are trying which is a step in the right direction. I talked to a colleague of mine yesterday and a friend of his sold his house in Paso Robles in 2 days, so something is working!

For any questions, comments, rants, etc…, you can reach me at RBaker@PeregrineLending.com