Q: It seems that mortgage rates don’t always drop as much as the Fed does, but instead drift down gradually or move very little. How can we know when and how to take advantage of lower rates?

A: The GOOD NEWS IS THAT MORTGAGE RATES HAVE DROPPPED IN RESPONSE TO THE .25% FED RATE CUT. NOW IS A GOOD TIME TO TAKE ADVANTAGE OF LOW COST AND NO COST MORTGAGES. If you can consolidate other debt or lower your current payment while spending little to nothing, my advice is to move forward. If rates drop further as the global economy and domestic uncertainty spook traders and chase them away from stocks, you can take advantage of lower rates IF AND WHEN THEY COME AROUND AND IN THE MEANTIMEYOU CAN BE HAPPY WITH THE GAINS YOU CAN ACHIEVE RIGHT NOW WITH LITTLE TO NO INVESTMENT. Call me at 831818-7700 or send email to jchubb1@ gmail.com for individual guidance and strategies to help you do home improvements and save money every month with lower mortgage payments and/or debt consolidation.

The Fed statement, which all of us rate trackers wait for, changed a bit from their last meeting, removing the statement that they would “act as appropriate to sustain the expansion “and replaced it with a commitment to continue to “assess the appropriate path of the Fed Funds Rate” going forward. In layman’s terms this means that further rate cuts and even lower mortgage rates are NOT necessarily assured, but they may occur if global economic circumstances demand it.

My TRANSLATION: Economic growth has slowed. Absent a change in the U.S. trade war/tariff policies, a sizable pick-up in business spending, consumer spending and employment growth, our economy, along with the global economy, will soon begin to shed jobs and slow further. If this happens, rates will gradually drop as traders invest more money in bonds and mortgage securities. My advice: Take the bird in the hand now and be ready to do it again if and when conditions warrant…and call me for strategic advice.