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Is a Fed rate cut really good news for mortgage rates?

March 25, 2008 by  
Filed under Finance

There’s been a lot of news regarding Fed rate cuts and thought those of you who may be considering these cuts as the right time to refinance should get some additional information before calling your mortgage officer. In a recent CNBC article, Barry Habib explains how Fed rates and mortgage rates differ.

The bottom line is that it appears mortgage rates will get better if the stocks sell off and will get worse if the stocks rally. So it is not necessarily what the Fed does that affects mortgage rates, it’s how the Nasdaq and broader stock market interprets the Fed’s action that will ultimately influence the direction of mortgage rates.

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