When we hear that the Fed is going to lower rates, many people believe that they are also talking about mortgage rates. That is not the case. When the Fed lowers the rates, the mortgage rates actually go up. Why? Simple supply vs. demand. What the Fed is really lowering are the interbank lending rates. [...]
Posts Tagged ‘rates’
Why, when the Fed cuts rates, does the 30yr fixed rate go up?
Posted in Mortgage, tagged 30yr, fed, Mortgage, rates on February 27, 2008 | Leave a Comment »
