One myth about mortgages is when one rate rises, the rest follow. There is talk that before the end of the year, the Federal Funds Rate, the interest rate at which banks and other depository institutions lend money to each other, will rise. Although the Federal Funds Rate does have an affect on 1st time mortgage rates, many times, it has an opposite effect.

The red line above shows the Federal Funds Rate rising and the blue line shows that the 1st time mortgage rate actually went down or stayed very stable.

Don’t believe everything you hear about mortgage rates. My recommendation is call your Mortgage Consultant and learn what the rates mean to you.