Mortgage Rates not Expected to Budge on Latest Fed Rate Cut [Video]

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Federal Reserve policymakers lowered short-term interest rates by a quarter of a percentage point Thursday, a move that had been anticipated by investors and isn’t expected to have much impact on mortgage rates.

Mortgage Bankers Association Chief Economist Mike Fratantoni said the MBA expects mortgage rates will “remain within a fairly narrow range over the next year.”

“Financial markets fully anticipated this rate cut, and the [Federal Open Market Committee’s] statement provides no new information regarding the likelihood of future cuts,” Fratantoni said in a statement. “The big impact on rates this week was clearly the election. As results rolled in, longer-term rates jumped higher. Investors expect somewhat stronger economic growth, higher …