The Fed has cut interest rates again, but long-term fixed-rate mortgages may go up.
NEW YORK (CNNMoney.com) -- The Federal Reserve cut interest rates by three-quarters of a percentage point Tuesday, but don't expect mortgage rates to go down too. In fact, home loans could be heading higher.
Consider recent history: The Fed issued an emergency cut of short-term rates in early January, and then trimmed more just a few days later - but the 30-year fixed mortgage rate has responded by bouncing up from 5.6% to 6.4%.
Article at CNN Money:
http://money.cnn.com/2008/03/14/news/economy/ratecut_mortgages/index.htm?postversion=2008031809
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