Use Rate Tables to Stay Atop Changing Market

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Use Rate Tables to Stay Atop Changing Market

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 best rates no matter what the rate environment is like.

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 online rate tables regularly will ensure consumers find the highest annual percentage yield (APY) for a savings product of their choice.

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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Good advice. Better follow it the market yourself then listening to Realtor and loan officers who care about nothing but their commission. Your loan and mortgage and you family finance is the last thing they care about. In fact, i bet 95% of them are giving bad advice knowing that it will hurt your family economics.

Pay attention and don't trust them.

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2 People Helped

The problem today is that spreads are historically high. Spreads are the difference between the 10 year note and the rate a mortgage lender will give you. Historically, the spread is about 1.5 to 2 basis point. Right now, spreads are 3.5-4%. Banks are nervous and losing money, so spreads are increasing. The lender keeps the spread. Right now, mortgage rates should be about 4%. Rates change daily in the market. Go to to track the daily trends. Ticker symbols are ^TNX for 10 year notes.

You are absolutely right. This is a result of the credit crisis. The good news is that conforming loans are near historical lows due to the fed moves. Jumbo loans on the other hand still have a very high risk premium.

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