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federal reserve: As The Fed Funds Rate Falls, 30-Year Fixed Mortgages Rise - 02/28/08 08:51 AM
Federal Reserve Chairman Ben Bernanke testified to Congress Wednesday, alluded to further rate cuts to support an ailing U.S. economy.
Already, the Federal Reserve has lowered the Fed Funds Rate by 2.250% since September 2007.
The graph at right comes from the Wall Street Journal and it highlights a very important correlation between the Fed Funds Rate and mortgage rates.
The correlation is that there is no correlation.
Since the Fed began cutting rates five months ago, mortgage rates on 30-year fixed mortgages are higher, as are jumbo mortgage rates.  ARMs, however, are lower.
Especially noteworthy is how 30-year fixed rates started to spike as the Fed … (4 comments)

federal reserve: Looking Back And Looking Ahead : February 25, 2008 - 02/25/08 10:52 AM

It's a big week for mortgage markets (again) and that should cause rates to fluctuate wildly (again). 
The volatility we've seen since December has not been for the faint of heart.  Even this past Friday, as mortgage rates were poised to end the week lower, a late-afternoon stock market rally reversed it. 
In the last 45 minutes of trading, the Dow Jones Industrial Average swung 225 points.  Mortgage rates rose, too, peeving Americans who planned to go house-hunting over the weekend.
This week, mortgage rates will take direction from a handful of economic reports including the Federal Reserve's preferred inflation marker -- … (0 comments)

 
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