The new addition of Keri Shepherd’s mortgage newsletter is out and can be viewed by clicking HERE.  This is truely a must have if you haven’t signed up for it yet.  It will give you a great understanding of what is effecting rates.  Stuff you NEED to know before “locking your interest rate” when going to buy.  This alone could save you thousands of dollars over the life of the loan.  Signing up for it is as easy as clicking on the link on the upper right corner of her newsletter.

These tame inflation numbers give the Fed a green light to cut the Fed Funds Rate by another .75% at Tuesday’s meeting…but read on to understand exactly how this cut may impact YOU.

The Fed is expected to cut the Fed Funds Rate by another .75%. However, as we’ve seen following every Fed rate cut in the recent cycle, chances are very good that Bond pricing will worsen following the cut…which results in higher home loan rates. This happens because Fed rate cuts help to stimulate the economy, by making it less expensive to finance personal and business purchases…and this in turn fuels inflation, the arch-enemy of fixed return assets like Bonds, which home loan rates are based on.