All opinions are those of Michael Haigh or the Guest Blogger featured.
They do not necessarily reflect the opinions of W.J. Bradley Mortgage Capital, LLC


History Is A Teacher: Cuts To The Fed Funds Rate Lead To Mortgage Rate Hikes

Posted by on January 30, 2008 · Leave a Comment 

When the Fed cuts the Fed Funds Rate, mortgage rates tend to rise

When the Federal Open Market Committee adjourns from its two-day meeting today, it is widely expected to lower the Fed Funds Rate.

This does not mean that mortgage rates will fall.

In fact, using history as an indicator, we should expect mortgage rates to rise if the Fed Funds Rate falls.

Remember: The Fed Funds Rate is an overnight interest rate between banks; mortgage rates are long-term rates based on the bond market. These are two very different animals.

The FOMC’s press release hits the wires at 2:15 P.M. ET.

Be Sociable, Share!

Related posts:

  1. The Effect Of Fed Funds Rate Cuts On Mortgage Rates
  2. The Fed Funds Rate Does Not Directly Impact Mortgage Rates
  3. Like The Fed Funds Rate, The Fed’s Discount Rate Does Not Control Mortgage Rates
Be Sociable, Share!
Print Print  Email Email

About

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

  • About the Team

    The Michael Haigh Team specializes in providing a professional, efficient and educational loan experience. We strive to find you the best real estate loan to suit your needs without putting you at risk—even if it's not from us! Our site will provide you with a plethora of information that will help you to figure out the loan process, answer your question, calculate the estimated value of your home, and calculate your estimated closing cost. On top of this you should check out our blog where we have frequent updates from Michael and other contributors on a multitude of topics related to mortgages.

    Backed by W.J. Bradley and Michael Haigh's notable history in the mortgage industry, The Michael Haigh Team is able to provide loan decisions much faster than large banks. Every aspect of your loan will be handled quickly and correctly so you know that nothing is left to chance. We're here to make this process as easy as possible for all parties involved and pride ourselves on making it right for every client. Contact us today to learn what we can do for you!

  • Michael Haigh Team

    1860 El Camino Real
    Suite 306
    Burlingame, CA 94010

    Privacy Policy
    • Web Analytics