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Fed rates vs mortgage rates
This chart gives an idea of what happens with Mortgage Backed Securities vs Fed Funds & Prim. The trend is close but monthly (and for sure daily) movements are much different. Interesting to note that in 04 the spread between ARMs and Fixed was massive compared to today. Just an indication that the "Market" does not like ARM's much.
Just a general rule of thumb is that as the stock market goes up, mortgage rates will go up and MOST of the time the reverse is true. Interest rates don't like inflation much, so that interferes & etc.
Charles
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