Comments on: Federal Funds Rate and 30 Year Fixed Mortgage Rate

By: Rich Crabtree

Rich Crabtree — Wed, 29 Oct 2008 00:07:26 +0000

Is there any way the goverment could mandate or force the 30 year fixed mortgage rate to stay FIXED at a let’s say 5 to 5.5% giving people a fair amount of time to refinance inot long term rates?

Has the government ever done anything like that in the past.

Why is the 10 year bond been going up?

It seems to me that the bailout should be for fixed long term mortgage rate reductions not LIBOR. LIBOR effects corporations lending and Long term Mortgage rates effect individuals. If the long term mortgage rates were sub 5.5% it would ignite refinancing for individuals that QUALIFY(proof of income, assets, equity). Also, those middle class individuals who qualify to refinance their mortgages would begin SPENDING a portion of the their monthly mortgage savings on other items; therefore, helping reignite the economy.

By: CuriousCat: 30 Year Conventional Fixed Mortgage Rates Increase

CuriousCat: 30 Year Conventional Fixed Mortgage Rates Increase — Mon, 09 Jun 2008 18:20:15 +0000

This year, the average discount rate has fallen every month while the average 30 year mortgage rate has climbed all but 1 month (a 5 basis point drop)…

By: Fed Funds Rate Changes Don't Indicate Mortgage Rate Changes at Curious Cat Investing and Economics Blog

Wed, 07 May 2008 12:57:09 +0000

In the last 4 months the discount rate has been reduced nearly 200 basis points, while 30 year fixed mortgage rates have fallen 18 basis points…

By: Will Fed Rate Cuts Lead To Lower Mortgage Rates? : Mortgage Law Network

Will Fed Rate Cuts Lead To Lower Mortgage Rates? : Mortgage Law Network — Mon, 31 Mar 2008 17:59:52 +0000

[...] going back at least 30 years, lowering of rates by the Fed does not co-relate with a decline in 30 year fixed mortgage [...]

By: Mortgage Rates Rising

Mortgage Rates Rising — Sun, 16 Mar 2008 00:30:29 +0000

“But now that person might have to pay a half percentage point more. With today’s rates, that translates into 6.75% for a 30-year fixed-rate mortgage instead of 6.25%…”