Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: stylin19a

"Legit Mortgage rates aren't tied to the Fed rate."

You're right, they're not "tied to" the Fed rate. 10 year treasuries have served as more of a benchmark. Increasingly, the newly reintroduced 30 year will begin to serve that purpose. However, the Fed rate does have an impact on treasury yields, and therefore mortgage rates, indirect though it may be. The big factor, and one that is largely outside of our control, is the fact tha yields are being depressed by heavy buying from China, Japan, etcetera ... dollars coming home to roost, so to speak. So long as this continues, long rates will continue to be lower than some might prefer.


59 posted on 03/01/2006 1:13:28 PM PST by RegulatorCountry
[ Post Reply | Private Reply | To 45 | View Replies ]


To: RegulatorCountry
that's a good explanation...thanx
64 posted on 03/01/2006 1:50:37 PM PST by stylin19a (Do you still have sex or are you already playing golf?)
[ Post Reply | Private Reply | To 59 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson