// 845.371.2222 Mortgage rates will generally follow these longer term Treasury rates, up and down. However it isn’t always a one-toone relationship. Sometimes Treasury rates will fall, and mortgage rates will go nowhere. This is because mortgage rates are also determined by mortgage-backed securities which have different characteristics than Treasury bonds. If your head is spinning by now, welcome to the club. Mortgage-backed securities are complex. Wall Street firms have spent tens of millions on supercomputers to model their movement. They are fiendishly difficult to predict. The main takeaway is that mortgage rates generally move in the same direction as the Fed Funds rate, but it isn’t an exact relationship. The latest drop in mortgage rates, bringing us to the lowest rates in two years, actually preceded the Fed Funds rate cut by months. So what’s the answer - is now the time to buy or not? The time to buy for homebuyers is when you need the home; for investors it’s when you are ready to invest. Residential real estate is traditionally a good investment no matter where the rates are. Just make sure you work with a good Mortgage Advisor to get a payment you are comfortable with. THIS PORTION OF THE ARTICLE IS SPONSORED BY: 131
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