Comments on: The Fed Dropped Rates, Why Aren’t Mortgage Rates Dropping? http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/ Phoenix Real Estate - Anything & Everything About It. Plus Random Musings... Fri, 10 Feb 2012 03:19:15 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Patty@Orlando Real E http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/#comment-43109 Patty@Orlando Real E Fri, 02 Jan 2009 06:43:29 +0000 http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/700#comment-43109 Overall market conditions affect all rates. Overall market conditions affect all rates.

]]> By: jmchood (Justin McHo http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/#comment-44822 jmchood (Justin McHo Wed, 17 Dec 2008 00:30:32 +0000 http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/700#comment-44822 Almost 1-year-old-post at TPREG: Fed lowers the fed funds rate to .25%, are mortgage rates now at .25%? <a href="http://tinyurl.com/6bdcg5">http://tinyurl.com/6bdcg5</a> Almost 1-year-old-post at TPREG: Fed lowers the fed funds rate to .25%, are mortgage rates now at .25%? http://tinyurl.com/6bdcg5

]]> By: Arizona Mortgage Rates October 31, 2008 — Phoenix Area Real Estate Blog http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/#comment-41179 Arizona Mortgage Rates October 31, 2008 — Phoenix Area Real Estate Blog Fri, 31 Oct 2008 19:30:43 +0000 http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/700#comment-41179 [...] as others have pointed out, a rate cut by the Fed to the federal funds rate doesn’t necessarily mean that overall mortgage rates go [...] [...] as others have pointed out, a rate cut by the Fed to the federal funds rate doesn’t necessarily mean that overall mortgage rates go [...]

]]> By: How does the Fed rate cut affect mortgage rates? « John Hall & Associates - Phoenix Real Estate Brokerage http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/#comment-41108 How does the Fed rate cut affect mortgage rates? « John Hall & Associates - Phoenix Real Estate Brokerage Wed, 29 Oct 2008 22:39:12 +0000 http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/700#comment-41108 [...] More about the difference between the federal funds rate and interest rates. [...] [...] More about the difference between the federal funds rate and interest rates. [...]

]]> By: Westboro Real Estate http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/#comment-41054 Westboro Real Estate Tue, 28 Oct 2008 07:10:17 +0000 http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/700#comment-41054 It is amazing that people still believe this mortgage myth. I have written about this misconception as well. It is amazing that people still believe this mortgage myth. I have written about this misconception as well.

]]> By: Steven http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/#comment-27426 Steven Mon, 03 Mar 2008 00:56:48 +0000 http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/700#comment-27426 Jay, Interesting article. I'm a bit surprised though by your comment, "the fed funds rate and mortgage rates aren’t “correlated”. Doesn't the fact that the coefficient of correlation is relativley very high - 0.79 - indicate that in fact there is a correlation? I would agree with you that mortgage rates are not tied to the Fed Funds or Discount Rates, but to say that they're not correlated seems to be missing the point. That's because if you told me the Fed dropped rates, wouldn't I be right about 4 out of 5 times to say that mortgage rates would also drop (vs. go up)? Keep blogging! Steven Jay,

Interesting article. I'm a bit surprised though by your comment, "the fed funds rate and mortgage rates aren’t “correlated”. Doesn't the fact that the coefficient of correlation is relativley very high – 0.79 – indicate that in fact there is a correlation? I would agree with you that mortgage rates are not tied to the Fed Funds or Discount Rates, but to say that they're not correlated seems to be missing the point. That's because if you told me the Fed dropped rates, wouldn't I be right about 4 out of 5 times to say that mortgage rates would also drop (vs. go up)?

Keep blogging!

Steven

]]> By: Michael Oliver http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/#comment-25351 Michael Oliver Sat, 26 Jan 2008 23:09:58 +0000 http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/700#comment-25351 We need the FED to just keep on dropping our AZ market is in the toilet at least now with one of the fastest growing populations in America we will tun much soner than later and then back to nice growth rates. We need the FED to just keep on dropping our AZ market is in the toilet at least now with one of the fastest growing populations in America we will tun much soner than later and then back to nice growth rates.

]]> By: Late Night Austin Re http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/#comment-25340 Late Night Austin Re Sat, 26 Jan 2008 04:11:37 +0000 http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/700#comment-25340 Looking at the chart it looks like regardless of the fed rate, interest rates dont fall much below 5%. Is this generally true? Is their pretty much no chance of ever having a 4% interest rate on a 30 year loan. Looking at the chart it looks like regardless of the fed rate, interest rates dont fall much below 5%. Is this generally true? Is their pretty much no chance of ever having a 4% interest rate on a 30 year loan.

]]> By: Jay - The Phoenix Re http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/#comment-25336 Jay - The Phoenix Re Fri, 25 Jan 2008 23:14:46 +0000 http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/700#comment-25336 Bobby Joe - isn't a MBS a bond? Maybe not, like I said, I'm not a lender or economist. Perhaps I chose the wrong word. Regardless, the main point of the article was that the Fed Funds rate and Mortgage rates are not well correlated. Do you agree (or not) with that? And whether mortgage rates are influenced by MBS's or the bond market, the fact is they are not controlled by the Fed. Bobby Joe – isn't a MBS a bond? Maybe not, like I said, I'm not a lender or economist. Perhaps I chose the wrong word. Regardless, the main point of the article was that the Fed Funds rate and Mortgage rates are not well correlated. Do you agree (or not) with that?

And whether mortgage rates are influenced by MBS's or the bond market, the fact is they are not controlled by the Fed.

]]> By: Bobby joe http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/#comment-25334 Bobby joe Fri, 25 Jan 2008 20:04:01 +0000 http://www.phoenixrealestateguy.com/the-fed-dropped-rates-why-arent-mortgage-rates-dropping-2/700#comment-25334 The Mortgage rates are NOT created from MBS yield ... Follow the bond market and you'll find your Mortgage rates. You need to read more about the money/credit/debt cycle. You'll find the reason why so many people are calling for more pain. The Mortgage rates are NOT created from MBS yield … Follow the bond market and you'll find your Mortgage rates.

You need to read more about the money/credit/debt cycle. You'll find the reason why so many people are calling for more pain.

]]>