In a surprise move the Federal Reserve just lowered the Fed Funds Rate by .75% to 3.50%. This move was prompted by an emergency meeting as global equity markets sold off significantly due to foreign investors' fears of a recession." US

While many believe that a cut to the Fed Funds Rate results in an immediate decrease to mortgage rates, this is not true. In fact, on several occasions in the past, a cut to the Fed Funds Rate resulted in mortgage rates going higher in following weeks.

Currently we are enjoying mortgage rates at three-year lows, which are very near all time lows. However, in almost every case when we have reached these levels in the past, rates have reversed and started moving higher, sometimes a lot higher. If you're in the home buying mode I would advise doing so now, make your offer and a loan application today and capture a phenomenal interest rate.