Mar 28, 2020

0% Mortgage Sounds Awesome!

In light of the Fed’s recent move to drop the Federal Funds rate to 0%, a lot of questions have arisen from both agents and their clients about mortgage rates and the connection to The Fed’s move.

In other words, why aren’t mortgage rates 0%, too?

Well, it is a long and subtle argument, but the short version is that the Fed’s rate and mortgage rates are like water temperature and air temperature –– the are related, but nowhere near 100% correlated.

If you would like a quick primer on the difference, feel free to check out the presentation we put together for the office –– especially in light of the disconnect caused by Coronavirus.