ma: The Fed Meets today, so what's going to happen to interest rates?
- 05/09/07 06:28 AM
Good Afternoon, This week of May 7th - 11th is pretty light in terms of economic reports scheduled for release that could impact rates. For all of you readers wondering what exactly drives interest rates, I will offer a brief summary. Interest Rates are driven by the bond market, which in essence is the buying, selling and trading of mortgage backed securities. A very general rule of thumb for the bond market is that when the stock market struggles, rates generally improve as investors pull money out of their investments on Wall Street (stocks) and invest in bonds (mortgage backed securities). This is because bonds offer a much safer return on their investment, the … (0 comments)
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