You’ve probably seen a lot of headlines going around recently saying that the Federal Reserve cut their benchmark rate to - or near - 0 percent. It’s the second recent emergency cut made in an effort to bolster the economy as the novel coronavirus that causes COVID-19 spreads in the U.S. and businesses have slowed or even closed.
Like many other homeowners, you’re thinking there’s no better time to refinance when interest rates are at or near zero.
Unfortunately, having the Fed rate at or near zero percent does not mean that mortgage rates are at or near 0%.
Borrowing costs for fixed-rate mortgages are set by bond investors. The Fed’s decision to cut its benchmark rate will in the short term put even more downward pressure on other rates, mortgage rates included.
With that said, however, mortgage rates are still great in comparison to historical figures, which is why it's still a good time to refinance in general. Just don’t expect your interest rate to be zero.
For more information on mortgages, interest rates and financing - or to get the process started - contact Steve at Nation’s Lending, 520-612-0479, or stop in at 210 W. Continental Road, Suite 116A, Green Valley AZ 85622.
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