Homeowners And Buyers
If you are looking to buy a home, decreasing rates is certainly a good time. While mortgage rates aren’t directly linked to the Federal Funds Rate, they do generally follow over time. Lower mortgage rates mean you get into the house you want while saving on interest. One thing to be careful of, is that you don’t increase your budget to simply get into a bigger house than you need. Just because lower rates mean a lower payment, you should use this opportunity to save money, not as an excuse to buy more home than you need.
If your savings account rate is dropping, you should be on the lookout for higher paying alternatives. Instead of a true savings account, your bank or credit union may offer a higher yielding money market instead. If your local bank isn’t keeping up with rates, you can also look online at many of the online savings institutions which generally have better rates than retail banks. DETAILS are IMPORTANT!!