Leonard H. Craver

Leonard H. Craver
Leonard H. "Tony" Craver

Saturday, March 5, 2016


Did you wonder why mortgage rates fell again slightly right after the
Fed raised the discount rate? Weren’t they suppose to rise? There are
several factors here for you to remember. The Fed rate is what the Fed
charges banks to borrow money. When the rate rises it directly effects
the amount of interest you pay on credit cards and non-mortgage related
bank loans. Mortgage rates are far more independent of the Fed rate
even though historically they follow the same trend. The big factor currently,
according to economists, is the lack of inventory in the real estate
market. There is a lot of competition for good properties making certain
markets look robust when the overall real estate market is mediocre at
best. For the time being these factors are holding down mortgage rates.