The Fed Rate Cut Aftermath
October 6th, 2007Mr Practical Oct 04, 2007 9:45 am
As stocks climb to new highs, let’s look at what the Fed’s rate cuts have really done. 30 year mortgage rates before the cut… 6.375%. 30-year mortgage rates after the cut… 6.625%. Stocks’ reaction… priceless.
Forget about 5-year ARMs and interest-only loans. Those are priced completely differently now and are bones in the sand. A mortgage broker at a big bank tells me business is down significantly with no signs of picking up.
http://www.minyanville.com/articles/banks-Fed+rate+cut-mortgage-ARMs-speculating/index/a/14350
