Fed Funds Rates Goes Up, Mortgage Rates Come Down

Once again, the FOMC raised its benchmark Fed Funds Rate and mortgage rates came down.

Consumer debts are tied to Prime Rate and Prime Rate is tied to the FFR.  Therefore, consumer debt is more expensive in the wake of the FOMC's announcement yesterday because Prime Rate increased by 0.25%, too. 

Prime is now 6.250%.

The cost of mortgage debt, by contrast, is less expensive.  The FOMC's decision to raise the FFR has increased demand for mortgage bonds, thereby pushing rates down.

This is a terrific opportunity for homeowners to swap out credit card interest for mortgage interest using a cash out refinance.