FED rates have been cut by 0.5%, and everyone is wondering why the current mortgage rates have gone up.  The FED lowers the 'fed funds rates' to stimulate the market from going into recession. It's very important to know that the fed funds rates directly affect 2nd mortgages, HELOCS, credit cards, student loans, and auto loans. They 'indirectly' affect first mortgages.

Mortgage Rates are based upon Mortgage Backed Securities (MBS). MBS are sometimes thought to act like 10yr bonds in how they fluctuate with the market. When the market is surging, the bonds are going up as well. When the market is falling, everyone will take their monies out of the market, and invest it into the bonds. This helps bring down the interest rates on mortgages, and helps 1st time home buyers get into FHA Loans, VA Loans, and even Super Jumbo Loans. Home Mortgages in Charlotte have been helping many homeowners refinance their current mortgage rate.

Low mortgage rates always drive the housing market, and makes it easier for a borrower to qualify.