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Old 11-08-2006, 09:34 AM
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Default Fed Funds rate and Mortgage rates

Anyone know why there's no direct correlation between Fed Funds rate and Long Term Mortgage rates? When the Fed raises interest rates, people fear that their mortgage rates will also rise. Is there justification to this?
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Old 11-08-2006, 05:30 PM
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Default Re: Fed Funds rate and Mortgage rates

They tend to go together and those who have adjustable rate loans would start paying more, but the fixed rates won't be affected. The companies are passing their cost of borrowing to the borrowers.
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