Will the Fed’s rate cut last week lower mortgage interest rates? ARM’s maybe, 30 year – probably not.

ARM’s are more closely linked to the Fed short-term rates and LIBOR.

Long-term interest rates are tied to the inflation rate and concerns about inflation. The Fed cut rates to help stimulate the economy, stimulation increases inflation concerns, inflation concerns help raise long-term mortgage interest rates.

Check with your lending professional to determine what loan is right for you.