Consumers shopping for a mortgage today may find it a bit easier to qualify for a home loan. Rate cuts take months to work their way through the economy but businesses and consumers could soon feel the effect of the Fed’s surprise move Tuesday to cut the federal funds rate to 3.5 percent. The fed funds rate is what banks charge each other for overnight loans, which also permits banks to lower interest rates for their best customers however the Fed does not control mortgage rates but lenders often look to it for direction. Thirty-year fixed-rate mortgages were already falling before the Fed’s rate cut mostly because they are closely tied to the 10-year treasury note which has been falling this year. Taking this into consideration the effect has been very positive for mortgage rates, the current thirty-year fixed rate is now at the lowest level since June 2003! For home buyers waiting for rates to fall before they consider purchasing, now is the opportune time to take advantage of the current levels and pull the trigger before the rates stabilize and start to move in the opposite direction.