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Mortgage rates are not directly but indirectly affected by the Fed moving rates. When the Fed makes a rate move it is felt by the investors. Mortgage rates are 6.5%, so it costs more than twice as much to borrow money to buy a house than it does to rent the same thing. Worse, total owner costs including taxes, maintenance, and insurance are about 9%, which is three times the cost of renting. Mortgage rates are subject to change without notice. Stock quotes, if displayed, are delayed 20 minutes.

Mortgage rates are the terms in which you agree to pay back the loan you took out to pay for your new home. There are a few to choose from depending on your financial situation, how long you want to live in the home, and the status of the housing market. Mortgage rates are as low as those listed below. The following rates are effective as of March 31, 2008. Mortgage rates are tied to the yields on 10-year Treasury notes. The yields are sensitive to fears of inflation.

Fixed mortgage rates are sharply lower since the Fed stopped raising interest rates at mid-year. In late June, the average 30-year fixed mortgage rate was 6.93 percent. Fixed rate mortgages are currently the most attractive option for borrowers. Six months ago, the average 30-year fixed mortgage rate was 6.71 percent, meaning that a $200,000 loan would have carried a monthly payment of $1,291.88. Fixed mortgage rates are more closely tied to bond and Treasury rates, and those both spiked a bit on today's cut (inflation fears and comments from the Fed that further rate cuts are unlikely). So you certainly might look into refi options, but don't count on any significant mortgage rate changes from today's news.

Refinancing of mortgage loans with low refinance mortgage rates is a good way to lighten the burden of your bills. One low payment will enable you to consolidate your bills and help you to pay off your debt in cash. Refinance applications, fueled by the big drop in fixed rates last week, jumped 82% in the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending March 21.

Brokers act as intermediaries between you and several lenders. While this may be helpful if you would rather shop around for different lenders through a "liaison," there may be some downsides to using a broker. Brokers have two options when submitting a loan to a lender. They can register the borrower's information and choose to "lock" the rate, or they can "float" the rate and choose a rate at a later time.

Lender risk plays a big part in your rate. For instance, a loan for a single-family home is less risky than one for a multi-family home because there are fewer variables. Lenders usually write these loans for their own portfolios, meaning that there are wide ranges of rates in most markets, so you'll need to shop around. Of course, most equity loans aren't made with terms of 30 years, but are usually available in 10 and 15- year flavors, so if you started with a 15-year loan, or if you're deep into your mortgage -- more than ten years in -- you can possibly replace your exising loan at a lower rate or even shorten the term a little with no real rise in monthly payment.