Fed Cut Rates again - what does that mean for home buyers?

On Tuesday, the Federal Reserve Board cut rates again by 3/4 of a point (See CNN Rate Cut Story). So what does that mean for people buying a home or refinancing? Typically, this means rates for equity loans will Drop. Mortgage rates are not directly tied to the Fed Rate Cut - and sometimes mortgage rates even go up after the Fed lowers rates. I'm not an expert in this subject - but here are two good articles to explore. The Chicago Tribune arcile on the Rate Cut explores the larger economic impact of the rate cut on the economy. While The Minneapolis Star Tribune - reports that Mortgage rates actually went up to a 5.75% average after Tuesday's rate cut. If you really want to know how Mortgage rates are connected to the overall economy, read this article by Jim Buchta at the Minneapolis Star Tribune.