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How Soon Will the Rate Cut Affect You?

Rate Cut and You
CNBC.com
Rate Cut and You

Federal Reserve cuts in the federal funds rate have an unpredictable impact on long-term mortgage rates. So it's impossible to know for sure when -- or even if -- rates will fall as a result of the Fed's latest rate cut.

Fixed-rate mortgages usually do not change significantly in response to cuts in the fed funds rate. However, adjustable-rate mortgages may be more sensitive to Federal Reserve rate decisions.

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More on How the Cuts Will Hit You from Bankrate.com:

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Depending on the exact nature of their mortgage, some people with ARMs may see their rate adjust downward the next time the mortgage resets.

Conclusion

It's impossible to know when -- or even if -- fixed-rate mortgages will fall given the Fed's most recent trim to the federal funds rate. However, it's possible that some homeowners with adjustable-rate mortgages will see lower payments the next time their mortgage rates reset. You can use our handy mortgage calculator to determine what your monthly mortgage payment would be if you bought or refinanced a home.