Dec 13, 2007

Fed Rate Cut = Higher Mortgage Rates?

Yes! (Well this time anyway.) Why? Mortgage rates follow the bond market, not short term interest rates. Mortgage rates are also influenced by inflation concerns.

http://www.bankrate.com/nltrack/news/mtga/Dec1307_mortgage_analysisa1.asp?ec_id=brmint_ns_mortgage_20071213

So do rate cuts affect mortgage rates? Sometimes....

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