ARM Financing with the Fed in mind

[Vish Rav]

BP - 

The word on the street is the Fed is Dovish on interest rates. Thoughts on ARM financing (7/1 ARM) for the short term, and then possibly refinance to a fixed rate (once the fed cuts rates) in near future and lock in that low interest rates?

Is this all too much work for not much benefit/value?

Thanks in advance.

V

[Chris Mason]

The Fed does not set mortgage rates, or prices for most things. Market economy and all that, not a command economy.

The correlation is weak, and sometimes goes the other direction. The last time the Fed raised the Federal Funds rate, mortgage rates went down. Then Trump tweeted something, Wall Street went bonkers, and at that point rates went up.