CMB,,
I only in 4th grade right now. Thanx for the edukashen.
I assume that you are a finance major with an MBA, so I will bow down to you. Can you please point out to me in your link what I am supposed to study that shows that mortgage rates are affected by FFR…
I am willing to learn.
The federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight.
This is weak attempt by your intelligent friends to stimulate spending. Please find a statement for me from anybody that has studied (like you) that says the FFR drop will directly decrease mortgage rates.
The govt & fed are trying to keep us from heading to a depression. The lower that consumer rates are the more stupid people will spend cuz the rates on their HELOC and credit card just dropped ½ point.
Their mortgage rate DIDN’T JUST DROP.
FYI, when FFR was 1% (that was about 4% ago) 4+ years ago,
MORTGAGE RATES were 1 point lower than they are now.
Most ARMS are tied to LIBOR. Go back and read the OP question. Thanks for clearing this up to me.
