The Federal Reserve dropped their short term Federal Funds Rate an additional .25% yesterday which brings their total adjustment of 3% since the fall of 2007. The questions remains, why are mortgage rates not dropping in sync with the Federal Funds Rate?
click on the link below to watch a CNBC video which includes an easy to understand explanation. Enjoy. Video title: Assessing Mortgage Rates - Making sense of mortgage rates, with CNBC's Steve Liessman.
If you have questions or comments, just ask.
Jim Hogan, The LoanSource
Thank you for your insightful comment. I think you are right on the money. You are obviously very wise.
Posted by: first time home buyer loan | January 20, 2009 at 01:42 AM