On September 16th, 2008, the Federal Reserve kept the target Fed Fund's rate steady at 2.00%. The Fed Fund's rate is the overnight rate of interest at which Fed Funds are traded among financial institutions. These loans are used to fulfill Federal Reserve minimum funding requirements. While this decision was made to calm the market, rates have been moving somewhat unpredictably as of late. Informa Research Services, Inc. recommends consumers use the Internet to ensure they get the
Mortgage rates are not directly linked to the Fed Fund's rate, but historically, they tend to correlate over time. However, as of late, this has not been the case. Thus, the Fed Fund's rate may not be the best tool to anticipate mortgage rate movement right now. By checking rates regularly, consumers can familiarize themselves with rates and get a better sense of rate trends.
Interest rates on non-promotional deposit products may not have been at their highest prior to the Fed announcement, but there are many promotional offers available that flaunt high rates. Checking
Bottom Line: Regardless of what you hear in the news, one way for consumers to get a feel for the rates in the market is to check rates and national averages online regularly.
Source: Informa Research Services
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