Fed Cuts Rate - Update from Sean Barry at Wells Fargo
20th September 2007
I asked Sean Barry from Wells Fargo Home Mortgage (here in the Village of Rancho Santa Fe) to give us an update on the recent Fed rate cut:
“We had some good news this last Tuesday compliments of the Federal Reserve (the “Fed”). The Fed dropped the Fed Funds Rate and the Discount Rate by .500%. The drop in the Federal Funds Rate will directly effect consumer debt that is directly tied to the Prime Rate Index. Prime Rate moves in step with the Federal Funds Rate; therefore, Prime Rate moved from 8.25% to 7.75%. This is especially good news to homeowners that have 2nd liens that have floating interest rates - e.g. home equity lines of credit. The Fed’s move does not directly impact mortgage rates, but the rate reduction sends a positive message to the markets since it eases some of the credit tensions that have plagued the mortgage industry for the past month or so. Mortgage Rates are still historically low, and with home prices easing up it may quietly be a great time for home buyers to purchase a home.”
If you have any questions on mortgages, please feel free to contact Sean Barry of Wells Fargo Home Mortgage at (858) 759-2300.
Sean A. Barry
President’s Club 2006
Home Mortgage Consultant
Wells Fargo Home Mortgage
16079 San Dieguito Road, Suite A-1
(Mail Only: P.O. Box 3511)
Rancho Santa Fe, CA 92067
858.759.2300 Direct
877.858.SEAN (7326) Toll-free
858.630.4217 Fax
sean.a.barry@wellsfargo.com
www.seanabarry.com