Mortgage Rates Edge Up

Mortgage Rates Edge Up

September 21, 2007

WASHINGTON -- Long-term home-mortgage rates rose slightly this week, with the 30-year fixed rate averaging 6.34% compared with last week's 6.31%, according to Freddie Mac's weekly survey.
The mortgage rate averaged 6.40% a year ago.
The reduction in the Federal Reserve's target rate earlier in the week should help bring down short-term interest rates and "should also dissipate some of the volatility in short-term interest rates we observed earlier," said Frank Nothaft, chief economist at Freddie Mac.
The one-year, Treasury-indexed adjustable-rate mortgage inched down to 5.65% from 5.66% in the wake of the Fed move, in which it trimmed the fed-funds rate to 4.75%.

This information has been copied directly from the Wall Street Journal.

Educated consumers know and understand that The Fed cutting short term rates does not directly affect mortgage rates.