“This is great for me. My ADJUSTABLE RATE MORTGAGE will go down to about 3% if this happens. ROCK & ROLL baby!!!”
Fed Efforts Foiled By Banks as Mortgage Rates Rise
The interest rate on a 30- year fixed-rate mortgage has climbed to 6.37 percent from 5.5 percent since Jan. 24, according to the Mortgage Bankers Association. The U.S. Federal Reserve has cut interest rates five times since September.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aMaXTX_3tq9w&refer=worldwide
That’s exactly the problem. The credit default spreads are sky high, and it is a confidence thing. The Bear Stearns thing was a run on the bank. Lower interest rates won’t necessaril help that. It just needs to work itself through the system.