Surprise Rate Cut

The Federal Reserve Wednesday cut a key lending rate by a half percent. The rate is now 1.5% and is the rate banks charge each other for overnight loans. The rate cut came ahead of the regularly scheduled late October Federal Reserve meetings. The Prime rate is now just 4.5%. The 30 year fixed mortgage rate is not tied to this rate. Mortgage rates improved slightly after the cut and FHA mortgage rates, which account for the majority of loans lately stayed the same.