On September 18, 2007, the Federal Reserve cut loan interest rates for the first time in four years.  Two different rates were cut by half a percent each:

1. The benchmark lending rate dropped from 5.25 percent to 4.75 percent.
2. The rate for emergency loans for banks dropped from 5.75 percent to 5.25 percent.

 These rate cuts have resulted in the best mortgage rates in four years.  Although some experts are predicting that consumers won’t see much of a change, due to the precautions many lenders are taking against suffering more foreclosures, fixed rate mortgages should still be available at lower interest rates than they were before.

The Feds’ move may also be a boon for those looking for home mortgage refinancing.  Now that the dangers of "alternative" types of loans — i.e. adjustable rate mortgages — are so well publicized, many homeowners may want to move out from under these types of loan.  The interest rate cut will enable many homeowners to refinance their homes at fixed rates, providing them with payments they can count on to always stay the same and removing a source of constant worry for many.

Technorati Tags: best mortgage rates, fixed rate mortgages, home mortgage refinancing