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The Fed Just Cut the Benchmark Rate to 0%

In response to the coronavirus, the Fed did an emergency rate cut on the benchmark rate, slashing it to 0%. You must be wondering.. “Does this mean I can get a 0% rate?” or “Does this mean that interest rates have gone down?” Unfortunately, this has no direct effect on mortgage rates and secondly, the only person who gets to borrow money at 0% is Uncle Sam. So what will happen to mortgage rates? Well.. they will either go up or down as both reactions have happened when the Fed cuts rates. Historically, mortgage rates follow the 10 year treasury note. This is typically the best indicator of what will happen day to day.  Who does the fed rate cut help the most? This helps borrowers who have an adjustable rate mortgage, or a HELOC, and sometimes credit card rates. This is costly for the savers as it can lower the rates banks give on savings accounts and CD’s.