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30 yr fixed rate: FED Rate Cuts: How Low Can They Go? - 01/15/08 01:42 PM
Will Fed Rate Cuts Equal Lower 30 yr. Fixed Rates?
The Federal Reserve will be meeting on Jan. 29th & 30th to discuss the state of our economy.  Will they cut rates and if yes by how much?  Will the rate cuts lead to decreasing or increasing mortgage rates?
There's a lot of confusion about the Fed Funds Rate (FFR) and the typical 30 yr. fixed rate.  Do these rates move in the same direction or are they inversely related? 
First, let me provide a simplistic definition.  The Fed Funds Rate is the rate the Federal Reserve charges other banks for overnight deposits.  It … (2 comments)

 

Evan Vanderwey, The Cashflow Coach

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