Mortgage/Finance 
This category contains information to help you understand the key issues around financing real property.
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Fed Rate Cut & Mortgage Rates???
Friday, October 5th, 2007 at 10:31am. 894 Views, 0 Comments.
[[This post is provided by Scott Storace of Guild Mortgage.]] On September 18th, the Federal Reserve Bank cut the federal funds rate by 50 basis points or one-half percent. They also cut the federal discount rate by the same amount. Following these cuts I received many phone calls from borrowers and real estate agents who were trying to understand how the news would affect mortgage interest rates. To understand this one has to understand short-term and long-term rates, as well as, bonds and inflation. The Federal Reserve Board defines the discount rate as “the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility--the discount window.”…
