Too bad the lending market didn’t really give a damn. Sure it helps spur client interest from those lazy headline readers but anyone who understands how this stuff works knows it doesn’t really matter. They cut the overnight rate. What that means in a nutshell is the banks get charged less to borrow funds. The problem is many banks don’t pass this off to the consumers and instead they use it to clean up their balance sheets.Heck I was talking with my wife today who was griping about how they lowered the rates and yet she was getting bombarded with emails from lenders saying the rates being offered on loans had increased. Hmm I guess the lending rate doesn’t follow exactly what happens on a fed level. Two sided coin. Side A. I sure get tired of telling people why it doesn’t matter when the rates get cut.Side B. I sure am grateful to have the chance to discuss peoples financial situation and how I might help them. In this case I prefer people stay ignorant to how mortgages really work. After all headlines do create phone calls. If your looking for information on just about anything you can imagine thats mortgage related then head on over to my website at http://thecrazybroker.com
