Old 11-04-2008, 02:28 PM   #1 (permalink)
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Fed Interest Rate Cuts = mortgage rates higher?

Is this advice accurate for the current market?:

"The Fed cutting the federal funds rate has
never caused the 30 yr fixed rate mortgage rate to fall. It falls in
anticipation of the cut and then rises after. The spread between
mortgage backed securities and treasuries is at an intermediate high and
is widening. That means the 30 fixed rate has been rising."


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